On Monday, attorneys representing the Trump administration asked U.S. District Judge James Boasberg to rethink his decision that nullified a grand jury subpoena aimed at Federal Reserve Chairman Jerome Powell. This move seems to indicate a follow-through on their commitment to challenge the federal prosecutor’s order to DC Jeanine Pirro in the Supreme Court.
The Justice Department’s request for reconsideration, submitted on Monday, claimed that the court “applied the wrong legal standard, erred on certain facts, and overlooked other relevant facts.” They contended that subpoenas should be honored if there is a “reasonable possibility” that the materials sought might provide information that relates to the overall subject matter of the grand jury’s investigation, even if the recipient of the subpoena suggests an alternative motive.
The motion was filed just two days after Judge Boasberg dismissed two grand jury subpoenas directed at the Federal Reserve, determining that they were merely a “pretext” to pressure Powell into lowering interest rates or stepping down from his role as the head of the central bank.
The Justice Department further stated that the Federal Reserve Board has not contested that the subpoenas were only seeking information directly linked to the grand jury’s inquiry regarding extensive renovations at the Fed’s headquarters—costing over $1 billion, which is quite excessive, even for Washington, D.C.—and Powell’s testimony before Congress.
This judicial decision arrived shortly after Boasberg restricted Pirro’s office from proceeding with efforts to subpoena records and testimony related to the investigation of the central bank. In his recent judgment, he noted that the Justice Department “has not presented any evidence” that Powell committed any crime “other than displeasing” Donald Trump.
“Did the prosecutor issue the subpoena for a legitimate reason? The court found that it was not,” he indicated. “There’s a clear suggestion that the primary, if not the sole, aim of these subpoenas is to intimidate and pressure Powell into complying with the president or resigning to allow for a new Fed chairman.”
In response to the situation, Pirro described the ruling as “outrageous” and announced plans for the Justice Department to appeal to a higher court. She expressed her discontent, asserting that “this process has been arbitrarily undermined by activist judges.” Boasberg accused her of metaphorically standing at the entrance to the grand jury and “slamming the door without consideration for legal procedures, thereby hindering the grand jury’s essential functions.”
This appeal could extend Trump’s attempts to remove Powell from the Federal Reserve and secure the position for former Fed director Kevin Warsh, according to Senator Thom Tillis of North Carolina, who conveyed his thoughts via social media on Friday.
