The Judge wrote that evidence suggests that the government served the subpoenas ‘on the Board to pressure its Chair into voting for lower interest rates or resigning’
A US federal judge, on Friday, blocked subpoenas issued against US Federal Reserve Chair Jerome Powell by the Justice Department, citing “improper purpose”. The Judge wrote that evidence suggests that the government served the subpoenas “on the Board to pressure its Chair into voting for lower interest rates or resigning.”
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” wrote Judge James E. Boasberg in a filing dated March 11, reported AFP.
“The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them,” wrote E. Boasberg.
What is the case against Jerome Powell?
In January this year, the US Justice Department (DOJ) served the Federal Reserve with grand jury subpoenas– initiating a criminal investigation against chairman Jerome Powell for his testimony before the Senate Banking Committee in June 2025.
Accusing Powell of ‘fraudulent’ costs involved in the renovation of Federal Reserve office buildings, Trump claimed the cost had jumped to $2.5 billion from the $1.9 billion that was originally planned in 2019. The US justice department said the investigation is over potential ‘abuse of taxpayer dollars’.
Meanwhile, Powell claimed that the criminal probe stems from the Federal Reserve’s ‘decision to set interest rates based on what it believes is in the public’s best interest’, rather than ‘aligning policy with the president’s preferences.’
The US President has long been critical of Powell – who he had appointed as Fed chair in 2017 during his first term as president – but has often clashed with, over his hesitancy to slash interest rates. Labelling the banker as “Mr Too Late” and “numbskull”, Trump has repeatedly accused the Fed chair of keeping interest rates ‘too high’ for too long.
Who decides interest rates?
Powell alone does not decide interest rates. He is one