U.S. District Judge James Boasberg disputed a government request to reconsider its March 11 order quashing prosecutors’ subpoenas to the Federal Reserve Board of Governors.
Judge Boasberg found that the Department of Justice (DOJ) motion contained no new evidence and did not contain a material error in its prior order. He cited the Justice Department’s “complete lack of a good faith basis for suspecting a crime” and said that “the government’s fundamental problem is that it has not presented any evidence of fraud.”
The subpoenas were part of a criminal investigation by the U.S. Attorney’s Office for the District of Columbia into Federal Reserve Chairman Jerome Powell. The focus of the investigation is a $2.5 billion Renovation project for two Federal Reserve buildings that have not been renovated since their construction in the 1930s. While work on the buildings began in 2022 at an expected cost of $1.9 billion, costs have increased since then Renovations These include removing asbestos and lead, replacing “outdated” electrical and plumbing systems, and improving safety and accessibility.
The investigation began after Powell testified about the renovations before the Senate Banking Committee in June. However, Judge Boasberg quashed the subpoenas last month, saying they had an improper purpose. He wrote: “There is ample evidence that the primary purpose (if not the sole purpose) of the subpoenas is to harass and pressure Powell to either defer to the president or resign and make way for a Fed chair who will do so.” The judge said the president or administration officials made over 100 public statements criticizing Powell and pressuring him to lower interest rates.
When Powell announced the subpoenas in January, he said they were part of a pressure campaign to force him to lower interest rates as demanded by President Donald Trump. He claimed that the campaign also included attempts to fire Lisa Cook, one of the Federal Reserve governors. The Supreme Court is expected to decide by the summer whether the president has that authority.
