James Bosberg said “a mountain of evidence suggests” legal summons to pressure the Federal Reserve to cut interest rates.
According to court documents unsealed on Friday, US federal judge James Bosberg quashed subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell.
The ruling is a major blow to US President Donald Trump, who has repeatedly criticized Powell for not lowering interest rates.
The subpoenas issued in January are related to Powell’s testimony before the Senate Banking Committee in June 2025 about cost overruns related to renovations to the Fed’s building. According to the Fed, the project’s latest estimate of $2.5 billion is up from the $600 million 2022 figure of $1.9 billion.
The ruling halts Senate consideration of Trump’s nominee, Kevin Warsh, to replace Powell when his term ends on May 15.
Judge James Bosberg had the government “Produced essentially zero evidence to suspect President Powell of a crime” and so called its defense to the subpoenas “Flimsy and baseless” They appeared as a pretext to force Powell to cut interest rates.
“If the preponderance of subpoenas does not stand alone, there is abundant evidence that harassment and pressure on Powell will force the president to give in or resign and make way for the Fed chair,” he said.
After receiving the subpoenas in January, Powell released a video statement threatening criminal charges. “fake” To undermine the Fed’s independence in setting interest rates.
Boasberg’s ruling on Friday prompted US Attorney General Jeanine Pirro to issue subpoenas barring the feds from obtaining documents related to the building’s renovation. He said he was critical of the decision and planned to appeal.
Pirro’s plan to appeal could further delay Senate consideration of Warsh’s nomination, which already faces uncertainty over confirmation. Powell’s term as chairman ends on May 15, but he can remain on the Fed’s board unless a successor is confirmed.
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