Overview
- Chief Judge James Boasberg unsealed a 27-page opinion throwing out grand jury subpoenas, writing there was abundant evidence they were intended to pressure Jerome Powell to cut rates or resign.
- The ruling said prosecutors provided essentially zero evidence of a crime, deeming the stated focus on the Fed’s headquarters renovation and Powell’s Senate testimony a pretext.
- U.S. Attorney Jeanine Pirro denounced the decision, claimed Powell is now “bathed in immunity,” and said the Justice Department will appeal while also signaling a possible request for reconsideration.
- The decision complicates President Trump’s effort to install former Fed governor Kevin Warsh, as Sen. Thom Tillis reiterated he will withhold support and warned an appeal could prolong the confirmation process.
- Powell had earlier called the probe a threat to central bank independence, and the court’s action effectively constrains the investigation as the legal fight shifts to the appellate stage.