Judge Voids DOJ Subpoena for Fed Chair Powell, Citing Lack of Evidence

Overview

• The U.S. district court in Washington ruled the grand-jury subpoena invalid and said prosecutors offered "virtually no evidence" that Powell was a criminal suspect.
• The judge wrote the subpoena appeared intended to pressure Powell to endorse interest-rate cuts or resign, raising concerns about central-bank independence.
• DOJ issued the January subpoena over alleged false congressional testimony related to renovation work at the Federal Reserve's headquarters.
• Justice Department officials say they will appeal, a move that could complicate Senate consideration of President Trump's nominee, former Fed governor Kevin Warsh.
• With Powell's term ending May 15, the ongoing litigation and Senate dynamics could keep him in the role through or beyond that date.