Boasberg blocks Justice Department’s subpoenas of Jerome Powell

U.S. District Judge James Boasberg ruled in court documents unsealed Friday that the Justice Department cannot subpoena Federal Reserve Chair Jerome Powell, stating it was using the subpoenas as a tactic to pressure Powell into lowering interest rates. The Justice Department issued the grand jury subpoenas as part of a criminal investigation into Powell, which is led by U.S. Attorney Jeanine Pirro. 
Boasberg indicated in the ruling that Pirro’s investigation was motivated by getting Powell to follow Trump’s orders despite the Federal Reserve being an independent government agency, according to CNBC.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg wrote in the decision. “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 offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” he added.
The subpoenas were part of the Justice Department’s investigation into the central bank’s multi-billion-dollar renovation of its headquarters in Washington, D.C., and Powell’s testimony on the project to the Senate Banking Committee last year.
The ruling comes after President Donald Trump nominated Kevin Warsh to replace Powell as Federal Reserve chairman after his term ends in May. 
Pirro said she will appeal the decision.

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