A federal judge just slammed the brakes on President Trump’s DOJ probe into Fed Chair Jerome Powell, calling it a sham and shielding Powell from accountability over wasteful spending.
Story Snapshot
- U.S. District Judge James Boasberg quashed DOJ subpoenas targeting Powell and the Federal Reserve Board on March 13, 2026.
- Judge cited lack of criminal evidence and Trump’s public pressure as pretext to force rate cuts or resignation.
- Acting U.S. Attorney Jeanine Pirro vows appeal, blasting the ruling as “outrageous” from an “activist judge.”
- Sen. Thom Tillis (R-NC) opposes the probe, urging DOJ to drop it as a failed attack on Fed independence.
- Powell’s term ends May 15, 2026, amid ongoing tensions over high interest rates clashing with Trump’s growth agenda.
Probe Origins in Fed Renovation Scrutiny
In June 2025, Fed Chair Jerome Powell testified before the Senate Banking Committee, denying reports of extravagant renovations at Fed headquarters. He rejected claims of new marble, elevators, water features, beehives, or roof gardens, countering media portrayals of a “Palace of Versailles.” Summer 2025 saw the White House launch a probe after a New York Post article and urging from Federal Housing Finance Agency Director Bill Pulte. This scrutiny escalated into a DOJ criminal investigation focused on potential false statements to Congress and misuse of public funds. Powell, appointed by President Trump in 2018, faces criticism for maintaining high interest rates to combat inflation, directly conflicting with Trump’s demands for aggressive cuts to boost economic growth.
DOJ Subpoenas Quashed by Judicial Ruling
On January 11, 2026, Powell released a video on the Fed website labeling the DOJ subpoenas as politically motivated retaliation for refusing to slash interest rates. The DOJ, led by Acting U.S. Attorney Jeanine Pirro in D.C., issued subpoenas in January 2026 to the Federal Reserve Board as part of the criminal probe. U.S. District Judge James Boasberg unsealed his opinion on March 13, 2026, blocking the subpoenas. Boasberg ruled the DOJ provided “essentially zero evidence” of criminal activity, describing the effort as a pretext driven by Trump’s Truth Social posts pressuring Powell to resign or lower rates. The Federal Reserve declined comment on the decision.
Pirro Vows Appeal Amid Bipartisan Pushback
Jeanine Pirro held a combative press conference on March 13, 2026, pledging to appeal the ruling. She called it “outrageous,” accused Boasberg of being an “activist judge,” and claimed it grants Powell “immunity” while “neutering the grand jury.” This is the antithesis of American justice, Pirro stated. Sen. Thom Tillis (R-NC) on the Senate Banking Committee opposed the probe and appeal, labeling it a “failed attack on Fed independence” in an X post urging DOJ to move on. Other Republicans like Sens. Tim Scott and Cynthia Lummis echoed concerns, defending institutional norms despite criticizing Powell’s testimony preparation. No prior DOJ criminal probe of a Fed chair exists, highlighting the unusual nature of this clash.
Guess Who Just Blocked the DOJ From Subpoenaing Jerome Powell
https://t.co/2KFl3dsk50— Townhall Updates (@TownhallUpdates) March 14, 2026
Implications for Fed Independence and Economy
The ruling halts the probe short-term, bolstering Powell until his term expires May 15, 2026, while a DOJ appeal could extend uncertainty. Long-term, it reinforces Federal Reserve independence established by the 1913 Federal Reserve Act, deterring political interference in monetary policy. Financial markets view this as a stability signal favoring predictable, non-partisan rate decisions amid inflation fights. President Trump, who cannot easily remove Powell without cause, faces a judicial check on executive power. Bipartisan Senate criticism erodes DOJ credibility, raising rule-of-law questions in politicized justice. Wall Street and global central banks watch this U.S. precedent closely for impacts on economic policy reliability. Trump supporters see potential waste overlooked, fueling frustration with unelected bureaucrats resisting pro-growth policies after years of Biden-era inflation mismanagement.
Sources:
Judge blocks DOJ subpoenas in Fed Chair Jerome Powell probe citing ‘essentially zero evidence’
Court blocks DOJ’s probe of Fed Chair Jerome Powell
This is wrong: Pirro outraged after judge blocks Fed subpoenas in Powell criminal investigation
Judge quashes Fed subpoenas in DOJ criminal probe of Jerome Powell
