A federal judge turned down the Trump administration’s request on Friday to revisit the legality of two subpoenas aimed at the Federal Reserve, which were previously blocked last month.
In his ruling, U.S. District Judge James Boasberg stated that the government did not present any new evidence or point out any errors in the earlier decision made in March.
Boasberg remarked that the government’s “summary brief” did not convince him that a different outcome was necessary.
The Justice Department did not offer an immediate comment on this matter.
Last month, U.S. Attorney Jeanine Pirro had appealed the initial ruling that prevented two subpoenas from accessing Federal Reserve records that pertain to a criminal investigation involving Federal Reserve Chairman Jerome Powell and the costly renovation of the central bank’s headquarters.
In the request for reconsideration, Pirro’s office argued that Boasberg was overly restricting their ability to pursue evidence of potential crimes by blocking the subpoenas.
Following the ruling, Pirro expressed her discontent, labeling it as “outrageous” and criticizing Boasberg as an “activist judge,” claiming it allowed Powell to act without accountability.
In his response, Boasberg emphasized that the essence of the initial ruling was being overlooked: the government shouldn’t wield subpoena power for inappropriate purposes.
He argued that the subpoenas didn’t stem from a legitimate criminal investigation, but rather seemed like a strategy for Trump to pressure Powell after months of asking him to lower interest rates.
“No matter who receives the subpoena…it’s clear who they’re trying to target: Powell,” Boasberg wrote.
While the government has the option to appeal this decision to a higher court, it remains uncertain whether they will proceed, especially considering that it could delay the confirmation of Kevin Warsh, Trump’s nominee to replace Powell.
Senator Thom Tillis, a Republican from North Carolina and a member of the Senate Banking Committee, vowed to block any Federal Reserve nominations until the government wraps up its investigation into Powell.
Powell mentioned during a Fed board meeting last month that he would serve as “chair pro tem” if a replacement isn’t confirmed by May 15, as required by law.
He also indicated his intention to stay on the board until the investigation is fully resolved, but he hasn’t decided yet whether he will continue in his role once Warsh becomes chairman.
Powell could potentially serve as governor until 2028.
