Judge denies Justice Department request to revive Federal Reserve subpoenas

Washington — A federal judge on Friday rejected efforts by the Justice Department to revive two subpoenas it served to the Federal Reserve as part of its criminal investigation into Chairman Jerome Powell and the Fed's building renovations, after the judge had quashed them on the grounds they were pretextual and not based on evidence of a crime.

"The Government's arguments do not come close to convincing the Court that a different outcome is warranted," wrote Chief Judge for the District of Columbia James Boasberg.

In January, Powell revealed that the Federal Reserve had received grand jury subpoenas from the Justice Department as part of an ongoing criminal investigation into him.

The subpoenas threatened a criminal indictment related to Powell's testimony before the Senate Banking Committee in June 2025, according to Powell. The chairman — who has drawn President Trump's ire for declining to rapidly slash interest rates — said the probe centered on his comments about a years-long renovation project at the Federal Reserve's office buildings. The investigation has not resulted in any criminal charges.

In sealed proceedings, lawyers for the Federal Reserve asked Boasberg to quash them. Boasberg granted the request and unsealed his decision last month, prompting U.S. Attorney Jeanine Pirro to accuse him of being an "activist judge" whose decision was "untethered to the law."

The government is both appealing the ruling and filed a separate motion asking Boasberg to reconsider his decision.