Judge Blocks Powell Investigation Subpoenas

A federal judge in Washington, D.C., on Friday, March 13, 2026, blocked a criminal investigation into Federal Reserve Chair Jerome H. Powell, quashing subpoenas issued by federal prosecutors. Judge James E. Boasberg ruled that the investigation, concerning the renovation of the Fed's Washington headquarters, lacked evidence of criminal activity and appeared primarily motivated by presidential pressure.

The 27-page decision criticized the U.S. attorney's office for pursuing a case against Powell, citing a lack of evidence beyond the Federal Reserve Chair displeasing the President. The judge concluded that the subpoenas' dominant purpose was to harass Powell into yielding to presidential demands or resigning, thereby undermining the Fed's political independence. The investigation began late last year when the U.S. attorney's office served two subpoenas seeking records related to the renovations and Powell's congressional testimony.

The ruling carries significant implications for the independence of the Federal Reserve and the confirmation of its next chair. Senator Thom Tillis, a Republican, reaffirmed his pledge to block any nominee to the Fed until the investigation into Powell concludes, stating the ruling confirms the investigation's frivolous nature. Powell's term is set to expire in May, with Kevin Warsh nominated as his replacement.