A U.S. federal judge has refused to reconsider his earlier decision blocking subpoenas targeting Federal Reserve Chair Jerome Powell. The ruling is the latest development in a dispute between the Justice Department and the central bank.
U.S. District Judge James Boasberg said the Department of Justice failed to provide new evidence or show any legal error in his original decision. As a result, he denied the request to lift the block on the subpoenas.
Background of the Case
The subpoenas were issued as part of a Justice Department investigation into the Federal Reserve’s $2.5 billion renovation project in Washington, D.C. However, the court previously ruled that the subpoenas were not clearly linked to that investigation.
Judge Boasberg stated earlier that the government had presented “essentially zero evidence” suggesting wrongdoing by Powell.
Allegations of Political Pressure
The case has drawn attention because of claims that the subpoenas were intended to pressure Powell over interest rate decisions. U.S. President Donald Trump has repeatedly criticized Powell in recent months, urging changes to interest rates.
Powell has described the investigation as a “pretext,” suggesting it was meant to influence Federal Reserve policy rather than address any real legal issue.
DOJ Position
While appealing the earlier ruling, the Justice Department acknowledged it did not have direct evidence of a crime. Instead, it argued that the large amount of money involved in the renovation justified further scrutiny.
Why This Matters
The decision highlights tensions between political leadership and the independent Federal Reserve. It also raises broader questions about the limits of government investigations and the importance of evidence in legal actions.
