A U.S. judge on Friday upheld his earlier decision to block subpoenas issued in a criminal investigation into Federal Reserve Chair Jerome Powell, setting the stage for a likely appeal that could further delay President Donald Trump’s push to install a more compliant central bank chief.
Chief Judge James Boasberg of the District of Columbia rejected the Justice Department’s proposal to reconsider its earlier decision, which had effectively halted the criminal investigation against Powell.
In a March 13 ruling, Boasberg ruled that the subpoenas to the Fed board in January were issued with the improper purpose of pressuring Powell to meet Trump’s demands to quickly lower interest rates or resign.
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The subpoenas, issued by Washington D.C.’s top federal prosecutor, Jeanine Pirro, a strong Trump ally, sought information about the cost overruns of renovations at Fed headquarters and Powell’s testimony to Congress last year about the project.
The decision is Powell’s latest victory in his battle with the district attorney’s office over the investigation, which he called a pretext for Trump to gain more influence over the Fed and monetary policy.
She promised to continue the investigation and said her office is prepared to appeal to the U.S. Court of Appeals for the D.C. Circuit. Justice Department leadership supported the decision to appeal, according to a source familiar with the matter.
The appeal could delay the confirmation of Kevin Warsh, chosen by Trump to succeed Powell as head of the Fed.
