Trump’s marketing campaign in opposition to Fed chair Jerome Powell dealt crushing blow in court docket
A court ruling delivered a crushing blow to President Donald Trump’s campaign against Federal Reserve Chair Jerome Powell.
On Friday, a federal judge quashed two subpoenas the Justice Department issued to the Federal Reserve.
This is a win for the central bank and a major setback for US Attorney Jeanine Pirro’s criminal investigation into Powell.
In a blistering 27-page decision unsealed March 13, US District Judge James Boasberg determined that the subpoenas were improper.
‘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,’ Boasberg wrote. ‘On the other side of the scale, the government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president.’
Pirro, a longtime ally of Trump, launched the probe to investigate whether Powell misled Congress last summer during testimony about the Federal Reserve’s building renovation project.
She blasted Boasberg’s ruling at a news conference Friday, calling it outrageous, and vowed that the decision will be appealed by the DOJ. ‘Jerome Powell is now bathed in immunity,’ Pirro fumed. ‘This is wrong, and it is without legal authority.’
Jeanine Pirro, a longtime ally of President Donald Trump, launched the probe to investigate whether Powell misled Congress last summer
A federal judge has quashed two subpoenas the Justice Department issued to the Federal Reserve
The inquiry triggered a rare public response from Powell, who said in a January 11 video statement that the investigation was merely a pretext for Trump’s ongoing effort to pressure the Fed to cut interest rates and undermine the central bank’s independence.
‘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 in the video.
‘This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.’
The investigation focused on Powell’s congressional testimony, internal records, and spending tied to a sweeping overhaul of the Federal Reserve’s historic buildings near the National Mall – an ambitious project that has ballooned hundreds of millions of dollars over budget.
Trump denied any involvement in the probe back in January, but he has blasted the Fed chair for his management of the central bank.
Just yesterday, Trump posted on Truth Social: ‘Where is the Federal Reserve Chairman Jerome ‘Too Late’ Powell, today? He should be dropping Interest Rates, IMMEDIATELY, not waiting for the next meeting!’
‘I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,’ Trump said.
The move represents the most serious legal threat Powell has faced since becoming Fed chair and places the independence of the central bank squarely in the political crosshairs. Trump has repeatedly attacked Powell for refusing to sharply cut interest rates, publicly floating his removal and accusing him of ‘incompetence.’
