Judge Blocks DOJ Investigation into Federal Reserve
A US judge has halted the Department of Justice's attempt to investigate the Federal Reserve, marking a legal win for Fed Chairman Jerome Powell. Powell had previously described the probe as a "pretext" aimed at pressuring the central bank to reduce interest rates.
In his decision, Judge James Boasberg concurred with Powell's position, stating that prosecutor Jeanine Pirro failed to present "no evidence" justifying her requests for information from the Federal Reserve.
Pirro announced plans to appeal the ruling, calling it "wrong on its face" and asserting that it had "neutered" her capacity to investigate criminal activity.
The case has raised concerns about potential political interference with the central bank and has complicated White House efforts to appoint a new Fed chair.
The Federal Reserve declined to comment on Judge Boasberg's ruling.
Pirro Responds to Ruling Amidst Controversy
At a passionate press conference, Pirro dismissed inquiries about whether her pursuit of the investigation would delay plans to replace Powell, referring to the issue as "white noise."
She criticized the judge's decision to dismiss the subpoenas her office had filed, which sought to compel the Fed to provide information regarding cost overruns on renovations of its offices. Pirro described the ruling as "outrageous," noting that prosecutors typically are not required to present evidence at this stage of an investigation.
"This process has been arbitrarily undermined by an activist judge,"
"Jerome Powell today is now bathed in immunity."
Pirro, a known ally of former President Donald Trump, was appointed by Trump last year as US attorney for the District of Columbia. She issued the subpoenas in January after her office's inquiries about the renovation and Powell's congressional testimony on the subject were ignored.
The subpoenas triggered an unusually direct response from Powell, who released a video accusing the Trump administration of initiating the legal probe to pressure the Federal Reserve into lowering interest rates.
Judge Finds Subpoenas Issued for Improper Purpose
In his ruling, Judge Boasberg stated he was convinced that the subpoenas issued by the Justice Department served an "improper purpose"—to pressure Powell to comply with President Trump's demands for lower 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 to resign and make way for a Fed Chair who will,"
"On the other side of the scale, the government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual."
Boasberg also referenced statements from key Republican senators who held a hearing on the renovation cost overruns and expressed that they do not believe further investigation is necessary.
Senator Thom Tillis of North Carolina has pledged to block the appointment of a new chairman to succeed Powell when his term ends in May unless the investigation is resolved.
Pirro Unfazed by Potential Political Impact
During the press conference, Pirro dismissed questions about whether her investigation might complicate White House efforts to replace Powell.
"I don't know and I don't care,"
"I am in a legal lane."
