A U.S. federal judge has refused to reinstate subpoenas targeting Federal Reserve Chair Jerome Powell, reaffirming his earlier ruling that the Trump administration's pursuit lacks credible legal basis. Judge James Boasberg, of the District of Columbia, dismissed the Department of Justice's motion to reconsider, stating the government's arguments "do not come close to convincing the Court" that the subpoenas should stand. The March 13 decision had already invalidated the subpoenas, which sought information from Powell over renovations at the Fed's historic Washington, DC, buildings. Boasberg ruled the subpoenas were driven by an "improper purpose"—namely, pressuring Powell to lower interest rates or step down. The judge emphasized that while grand jury subpoenas do not require proof of a crime upfront, they cannot be used as tools of political coercion.
President Donald Trump, who reentered office in January 2025, has publicly criticized Powell, calling him "incompetent," "crooked," and a "fool" for maintaining interest rates contrary to the president's demands. Although the Federal Reserve operates independently, Trump and his appointees have intensified scrutiny of Powell, focusing on cost overruns in the renovation project. In July, Trump appointee William Pulte urged Congress to investigate Powell for alleged "political bias" and misleading statements. Trump later suggested on Truth Social that he might file a "major lawsuit" over what he described as "horrible, and grossly incompetent" renovation work. On January 11, Powell disclosed he was under Justice Department investigation, calling it a "pretext" aimed at weakening the Fed's independence in setting monetary policy. "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," Powell said.
Boasberg concluded the government offered no substantial evidence of wrongdoing, rendering the subpoenas legally unsound. The Justice Department's claim that no initial evidence is needed for a subpoena was accepted, but the judge stressed such power is not unlimited. He found the dominant purpose of the subpoenas appeared to be political pressure, not a legitimate investigation. Powell's term as chair is set to end in May.
When Judge Boasberg says the government's arguments "do not come close," he is not just rejecting a legal motion—he is exposing a pattern of using investigative tools to punish policy independence. Trump's public attacks on Powell, paired with baseless scrutiny over building renovations, reveal an effort to weaponize oversight against a central banker who refuses to obey political demands. This is not about accountability; it is about control. If a central bank can be investigated for defying a president's rate preferences, independence becomes meaningless.
