A federal judge delivered a stunning rebuke to the Justice Department, blocking criminal subpoenas against Federal Reserve Chairman Jerome Powell and declaring prosecutors offered no evidence of any crime, calling the investigation nothing more than presidential harassment designed to force Powell’s resignation.

Court Shuts Down Justice Department Probe

Federal Judge James Boasberg ruled that prosecutors issued grand jury subpoenas to the Federal Reserve Board as a pretext to pressure Chairman Powell into either lowering interest rates or stepping down. The judge found abundant evidence that the subpoenas’ dominant purpose was to harass Powell and clear the way for a new Fed Chair who would comply with presidential demands. U.S. Attorney for D.C. Jeanine Pirro launched the criminal inquiry into Powell’s June 2025 Senate Banking Committee testimony about the Fed’s headquarters renovation project. Powell publicly revealed the investigation in January, describing it as an attack on the Federal Reserve’s independence.

Pirro announced Friday that the Justice Department would appeal, criticizing Boasberg as an activist judge who arbitrarily undermined the legal process. She argued the judge positioned himself at the entrance to the grand jury and slammed the door shut, preventing jurors from conducting their work. The ruling effectively stalls efforts to remove Powell and install former Fed Governor Kevin Warsh as his replacement.

Republican Senator Calls Investigation Frivolous

Senator Thom Tillis of North Carolina condemned the criminal probe as weak and frivolous on social media Friday. The Republican lawmaker said the ruling confirms the investigation amounts to nothing more than a failed attack on Federal Reserve independence. Tillis urged the D.C. U.S. Attorney’s Office to save itself further embarrassment by abandoning its appeal plans, arguing that continued legal battles will only delay Kevin Warsh’s confirmation as the next Fed Chair.

Presidential Pressure Campaign Exposed

Judge Boasberg cited at least 100 statements from the President and his deputies attacking Powell and demanding lower interest rates. The ruling quoted one presidential post calling Powell too late, too angry, too stupid, and too political for the Fed Chair position. Boasberg noted that being perceived as the President’s adversary has become increasingly risky, with prosecutors responding to presidential calls for criminal investigations. The judge’s decision highlights constitutional concerns about executive branch interference with the Federal Reserve’s independence, a cornerstone principle designed to insulate monetary policy from political pressure.