A federal judge on Friday said he was blocking subpoenas the Justice Department served on Federal Reserve Chair Jerome Powell in an investigation into his handling of the central bank’s renovation.
“A mountain of evidence indicates that the government tabled these subpoenas on the board to pressure its president to vote for lower interest rates or resign,” Chief Judge Judge James Bosberg of the US District Court in Washington, DC, wrote in a court filing.
Bosberg continued: “On the other side of the scale, the government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its assertions are so flimsy and baseless that a court can only conclude that they are presumptuous.”
“The court therefore finds that the subpoenas were issued for an improper purpose and quashes them,” the order said.
Powell said the threatened impeachment was related to his testimony before the Senate in June about the renovation of Federal Reserve office buildings.
“No one—certainly the chairman of the Federal Reserve—is above the law,” Powell said in an unprecedented Sunday night video statement on Jan. 11. “But this unprecedented move must be seen in the broader context of the regime’s threats and ongoing pressure.”
Before the start of his second term, President Donald Trump has pushed for lower interest rates and routinely attacked Powell and other top central bank officials. The administration has raised criticism that an affordability crisis has hit consumers.
The Fed cut interest rates three times last year.
“It depends on whether the Fed will be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will instead be dictated by political pressure or threats,” he said.
Powell said in a January video that the focus on his testimony and the headquarters renovation project seized by some administration officials last year was a “sham.”
“The threat of criminal charges is the result of the Federal Reserve setting interest rates based on our best assessment of what serves the public rather than following the preferences of the chairman,” he said.
The investigation has angered members of Congress, chief among them North Carolina Republican Sen. Thom Tillis said he would block confirmation of Trump’s nomination to replace Powell, Kevin Warsh, until he drops the investigation.
Tillis sits on a key subcommittee whose approval is necessary to bring Warsh’s nomination to the full Senate. Tillis reiterated his position earlier this week.
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