Hon. James Boasberg said a mountain of evidence suggests the legal summons was meant to pressure the Federal Reserve to cut interest rates

A US federal judge, James Boasberg, has quashed subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell, according to court documents unsealed on Friday.

The ruling is a major blow to US President Donald Trump, who has repeatedly criticized Powell for not lowering interest rates.

The subpoenas issued in January relate to Powell's testimony before the Senate Banking Committee in June 2025 on cost overruns tied to the Fed's building renovations. The project's latest estimate of $2.5 billion is about $600 million higher than a 2022 figure of $1.9 billion, according to the Fed.

The ruling has also stalled Senate consideration of Kevin Warsh, Trump's nominee to replace Powell when his term ends on May 15.

Judge James Boasberg said the government had "produced essentially zero evidence to suspect Chair Powell of a crime" and called its justification for the subpoenas so "thin and unsubstantiated" that they appeared to be a pretext to force Powell to cut interest rates.

"There is abundant evidence that the subpoenas' dominant, if not sole, purpose is to harass and pressure Powell either to yield to the president or resign and make way for a Fed chair who will," he said.

After receiving the subpoenas in January, Powell issued a video statement calling the threat of criminal charges a "pretext" to undermine the Fed's independence in setting interest rates.

Boasberg's ruling on Friday blocks US Attorney General Jeanine Pirro, who issued the subpoenas, from obtaining Fed records related to the building renovation. She has criticized the decision and said she plans to appeal.

Pirro's plan to appeal could further delay Senate consideration of Warsh's nomination, which already faces uncertainty regarding confirmation. Powell's term as chair ends May 15, but he can remain on the Fed's Board of Governors if no successor is confirmed.

(RT.com)