A federal judge for the District of Columbia has blocked subpoenas issued against the Federal Reserve in the criminal investigation led by Washington federal prosecutor Jeanine Pirro targeting Jerome Powell. In a particularly critical ruling, Judge James Boasberg found that prosecutors failed to demonstrate a legitimate purpose justifying these steps. According to him, evidence in the case indicates that the investigation may have been used to exert pressure on the Fed chair. In a statement, Prosecutor Pirro lambasted Boasberg's decision, announcing: "the Department of Justice will appeal this scandalous ruling."

In his decision, the magistrate asserts that there is ample evidence suggesting the subpoenas were intended to coerce Jerome Powell into complying with President Donald Trump's monetary policy demands, notably a rapid cut in interest rates. He added that the government presented no evidence of a criminal offense committed by Powell, other than the fact of having displeased the president. Prosecutor Jeanine Pirro, however, announced her intention to appeal the decision.

The case comes amid a tense political climate surrounding the leadership of the Federal Reserve. Republican Senator Thom Tillis is currently blocking the nomination of Kevin Warsh, Donald Trump's pick to succeed Powell, until the investigation is resolved. Jerome Powell indicated he had been questioned specifically about the cost of renovating the Fed's headquarters and his testimony before the Senate Banking Committee. On the X network, Thom Tillis described the investigation as an attempt to undermine the independence of the central bank.