Judge Blocks DOJ Subpoenas Against Fed Chair Powell

CNN

By Tierney Sneed, Jake Tapper, Bryan Mena, CNN

(CNN) – A federal judge has blocked subpoenas that the Justice Department had served against Federal Reserve Chair Jerome Powell, according to court documents released on Friday.

This decision is a significant setback for President Donald Trump, who has frequently criticized Powell for not reducing interest rates. It’s also an embarrassing moment for DC US attorney Jeanine Pirro, who initiated the investigation. Pirro expressed her disappointment in a hastily arranged news conference on Friday and announced plans to appeal.

US District Judge James “Jeb” Boasberg stated in his ruling that there is “a mountain of evidence” indicating that the Government issued these subpoenas to pressure its Chair into either voting for lower interest rates or resigning.

“On the other side of the scale, the Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual,” Boasberg noted.

The federal investigation highlights the Trump administration’s aggressive campaign against Powell and the Fed in an attempt to get the independent central bank to reduce interest rates.

Trump continues to criticize Powell on social media, and his administration is currently working to oust Fed Governor Lisa Cook, who was appointed by then-President Joe Biden. This situation could lead to a landmark case at the US Supreme Court.

Powell has mostly kept quiet amid Trump’s attacks but shortly after receiving a subpoena in early January, he released a striking video denouncing the investigation as an attack on the Fed’s independence.

Powell’s term as chair ends in May, and Trump nominated former Fed Governor Kevin Warsh for this position in January. However, Republican Sen. Thom Tillis-a key vote on the Senate Banking Committee responsible for confirming nominations-has stated that they should wait until Powell’s criminal investigation concludes before considering any votes.

Sitting with a slim majority in this committee makes it crucial for Republicans to have Tillis onboard if they want Warsh confirmed. In a statement made Friday, Tillis referred to this probe as “nothing more than a failed attack on Fed independence.”

“Appealing the ruling will only delay Kevin Warsh’s confirmation as the next Fed Chair,” he added.

A Striking News Conference

This afternoon, Pirro announced that the Justice Department would appeal Boasberg’s ruling while denying accusations that their investigation was politically motivated.

“Politics is not my focus right now,” Pirro told reporters during an unexpected news conference criticizing Boasberg’s decision. “We’re concentrating on legal matters. We care about serving our community here.”

Pirro claimed that Boasberg determined Powell is “beyond reproach.”

“This goes against American justice,” she continued. “This judge has effectively closed off access at the grand jury door.”

The investigation revolves around false statements made to government officials along with potential fraud charges. Pirro emphasized that it’s up to grand jury members to decide whether any charges should be filed.

Bosasberg, appointed by former President Barack Obama, has been particularly challenging for Trump over recent months due to his rulings in significant immigration cases which placed Trump’s administration under scrutiny and resulted in inquiries regarding possible contempt by officials violating his orders during those cases.

The calls from Trump suggesting impeachment proceedings against this judge led Chief Justice John Roberts to offer rare criticism stating litigants should appeal unfavorable decisions instead of targeting judges personally.

A judicial complaint filed last year by the Justice Department against Boasberg was dismissed later on.

‘An Improper Purpose Remains Improper’

The Board of Governors of Federal Reserve challenged these subpoenas back in February through secret proceedings which were only disclosed publicly on Friday.

Bosasberg concluded his ruling stating these subpoenas were issued “for improper purposes meant solely to harass and pressure Powell into persuading others within The Fed towards lowering interest rates or resigning so someone more compliant could take over.”

Acknowledging no prior case existed directly guiding him here Bosasberg remarked: “Even if nobody has tried something like this before; having an improper purpose remains inappropriate regardless.”

Bosasberg recounted public remarks from Trump directed at Powell alongside previous investigations aimed at him. He stated “facts strongly imply” this inquiry originated from improper motives along with resulting subpoenas being similarly questionable.”

According To Bosasberg The DOJ provided little more than “tenuous claims” supporting legitimacy behind their intentions concerning investigating further into alleged misconduct while failing completely spelling out discrepancies within testimony given previously making justification doubtful overall.

Bosasbergs final notes depicted frustration toward attempts searching valid cause suspecting previous Congressional testimonies hinting ,”The government may wish investigate mail fraud since someone once witnessed him sending letters”.

This story is breaking and will be updated.

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