No Evidence: Judge Shuts Down Fed Probe

A US judge blocked a Federal Reserve investigation, saying there was zero evidence against Jerome Powell. The ruling raises new concerns about pressure on the Fed.

sarah

Mar 14, 2026 - 04:55

No Evidence: Judge Shuts Down Fed Probe

A U.S. judge has halted the Department of Justice's efforts to investigate the Federal Reserve. This marks a victory for Fed Chairman Jerome Powell, who had characterized the probe as a pretext to pressure the central bank into lowering interest rates.

In his ruling, Judge James Boasberg concurred, stating that prosecutor Jeanine Pirro had presented "no evidence" to justify her demands for information from the Fed.

Pirro announced that she would appeal the decision, describing the ruling as "patently wrong" and asserting that it has "neutralized" her ability to investigate crimes.

The case has heightened concerns regarding political pressure on the central bank and has further complicated the White House's efforts to appoint a new Fed Chairman.

The Federal Reserve declined to comment on Judge Boasberg's ruling.

However, during a heated press conference, Pirro dismissed questions regarding whether her actions in this case would delay plans to replace Powell as Chairman when his term expires in May; she characterized the issue as "irrelevant noise."

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She criticized the decision to quash the subpoenas issued by her office—subpoenas that sought to compel the central bank to disclose information regarding cost overruns incurred during the renovation of its offices. She asserted that the ruling was "profoundly wrong," noting that prosecutors are typically not required to present evidence at this stage of proceedings.

"This process has been arbitrarily undermined by an activist judge," she stated. "Jerome Powell is now fully shielded by legal protections."

Pirro, a close ally of Donald Trump, was appointed by the President last year to serve as the U.S. Attorney for the District of Columbia. He issued these subpoenas in January, after his office’s requests for information regarding the renovations—and Powell’s testimony on the matter before Congress—were ignored.

Powell reacted to this move with uncharacteristic sharpness. He released a video accusing the Trump administration of resorting to this legal inquiry to pressure the bank into lowering interest rates.

In his ruling, Bosberg stated that he had become fully convinced that the Department of Justice’s subpoenas were issued with "improper motives"—specifically, to persuade Powell to accede to Trump’s demands for lower interest rates.

He wrote, "There is ample evidence that the primary (if not sole) purpose of these subpoenas is to harass and pressure Powell—either to comply with the President’s wishes or to resign and clear the way for someone who will." "Conversely, the government has presented almost no evidence to suggest that Chair Powell is suspected of any crime; indeed, its arguments are so weak and baseless that the Court can only conclude that they are mere pretexts."

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He cited statements made by prominent Republican senators in Congress—who had held hearings regarding these excessive expenditures—and who have stated that they do not believe any further investigation is necessary.

North Carolina Senator Thom Tillis has vowed to block the appointment of a new chairman until the investigation is concluded.

In a statement posted on social media on Friday, he noted that appealing this ruling would only delay the confirmation of Kevin Warsh—whom Trump had designated in January as his preferred choice to replace Powell.

"We all know how this is going to end, so the DC US Attorney’s Office should spare itself further embarrassment and move on," he said. He further stated that this decision has proven "how weak and absurd the criminal investigation is," and described it as "a failed attack on the independence of the Fed."

During the press conference, Piro dismissed concerns being raised regarding the impact of this move on the nomination, asserting that they lacked any substance.

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