Judge Quashes DOJ Subpoenas in Probe of Fed Chair Powell

A federal judge in Washington quashed subpoenas issued by the Justice Department to the Federal Reserve on Friday, ruling that the criminal investigation into Chair Jerome Powell over headquarters renovations was launched to pressure him into lowering interest rates or resigning. The decision by U.S. District Judge James E. Boasberg represents a significant setback for the probe led by U.S. Attorney Jeanine Pirro's office in the District of Columbia.

The subpoenas, served in January, sought records related to a $2.5 billion renovation project for the Federal Reserve's historic buildings near the National Mall, as well as testimony Powell provided to Congress in July 2025. The project, which has exceeded its original budget by about $600 million, faced higher construction costs amid 2021-2022 inflation, unexpected asbestos removal, and restrictions on building heights in Washington that necessitated costly underground work. Prosecutors alleged potential false statements to Congress and fraud in connection with the overruns, but Boasberg found no substantive evidence to support those claims.

In a 27-page opinion, Boasberg wrote that a mountain of evidence indicated the subpoenas'...