A federal judge on Friday refused to reverse his decision to kill Department of Justice subpoenas targeting Federal Reserve Chair Jerome Powell, dealing another blow to the Trump administration's investigation into the nation's central banker.
U.S. District Judge James Boasberg, chief judge for Washington, D.C., rejected the government's request to reconsider his earlier ruling that quashed grand jury subpoenas seeking Powell's records. In a sharply worded opinion, Boasberg wrote that the government "has presented no evidence whatsoever of fraud."
The ruling sets up a potential appeal and complicates confirmation efforts for Kevin Warsh, Trump's nominee to replace Powell when his term expires next month.
The Investigation and the Stonewall
Last month, Boasberg threw out the subpoenas on grounds that the probe appeared designed to pressure Powell into stepping down or capitulating to Trump. Powell disclosed in January that he had received subpoenas seeking documents related to the Federal Reserve's multibillion-dollar building renovation project. The DOJ was investigating whether Powell committed fraud and misled Congress about the work.
Jeanine Pirro, U.S. attorney for Washington, D.C., responded sharply to Boasberg's initial decision, telling reporters the investigation had been "arbitrarily undermined by an activist judge." On Friday, a spokesman for her office vowed: "We will absolutely appeal the judiciary's interference with our access to the grand jury."
The standoff has real consequences for Trump's transition plans. Senator Thom Tillis of North Carolina, a key Republican voice on the Senate Banking Committee, has repeatedly pledged to block Warsh's confirmation so long as the DOJ continues pursuing Powell.
Boasberg doubled down on his skepticism of the government's case Friday, saying the DOJ's arguments "do not come close to convincing the Court that a different outcome is warranted." The judge's willingness to stand firm against the administration suggests any appeal faces a steep climb.
The dispute represents an unusual moment in which an investigation into a sitting central banker has become entangled with presidential succession and confirmation battles, leaving Powell's successor in limbo as legal proceedings drag on.
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