"Lauren Fedor in Washington and Claire Jones in Nashville
Published 2 HOURS AGO
A US judge has blocked subpoenas issued by Donald Trump’s Department of Justice to the Federal Reserve, in a major blow to prosecutors’ criminal investigation into chair Jay Powell and a victory for the central bank.
James Boasberg, a US federal judge in the District of Columbia, wrote in an opinion unsealed on Friday that prosecutors were using their probe into renovations of the Fed’s headquarters to force Powell to “knuckle under” and bend to Trump’s relentless calls to slash borrowing costs.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the president or to resign and make way for a Fed chair who will,” Boasberg wrote.
The judge said the Trump administration had “produced essentially zero evidence” to suspect Powell of a crime, adding: “Its justifications are so thin and unsubstantiated that the court can only conclude that they are pretextual.”
Boasberg’s ruling will stymie the criminal investigation into Powell related to cost overruns on the Fed’s $2.5bn headquarters renovation project."
FT.com
Published 2 HOURS AGO
A US judge has blocked subpoenas issued by Donald Trump’s Department of Justice to the Federal Reserve, in a major blow to prosecutors’ criminal investigation into chair Jay Powell and a victory for the central bank.
James Boasberg, a US federal judge in the District of Columbia, wrote in an opinion unsealed on Friday that prosecutors were using their probe into renovations of the Fed’s headquarters to force Powell to “knuckle under” and bend to Trump’s relentless calls to slash borrowing costs.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the president or to resign and make way for a Fed chair who will,” Boasberg wrote.
The judge said the Trump administration had “produced essentially zero evidence” to suspect Powell of a crime, adding: “Its justifications are so thin and unsubstantiated that the court can only conclude that they are pretextual.”
Boasberg’s ruling will stymie the criminal investigation into Powell related to cost overruns on the Fed’s $2.5bn headquarters renovation project."
FT.com
