Overview
- The Fed, in a filing unsealed Thursday, asked Chief Judge James Boasberg to deny prosecutors’ bid to reconsider his March 11 order that blocked grand jury subpoenas tied to Jerome Powell and the headquarters renovation.
- An unsealed transcript shows a DOJ prosecutor told Boasberg on March 3 that the office did not know of any fraud or false statements by Powell, citing only about $1.2 billion in cost overruns as a reason to investigate.
- Boasberg’s ruling said the government offered essentially zero evidence and suggested the subpoenas looked pretextual, noting the Fed’s inspector general has audited the project without flagging fraud.
- U.S. Attorney Jeanine Pirro has vowed to appeal and has sought reconsideration, while the Fed argues prosecutors have not shown new law, new facts, or clear error to justify reviving the subpoenas.
- The dispute has political fallout as Trump continues public attacks on Powell, and Sen. Thom Tillis says the Senate Banking Committee will not move on Trump’s nominee Kevin Warsh until the probe is resolved.