A federal judge on April 3 upheld his previous decision to stay subpoenas in a criminal investigation into Federal Reserve chairman Jerome Powell.
U.S. District Judge James Boasberg rejected a request by the U.S. Department of Justice to reconsider his prior ruling that blocked the subpoenas. Powell is being investigated over a major renovation project taking place at the Fed’s headquarters.
Specifically, prosecutors have said Powell is being investigated for potential fraud charges stemming from testimony the Fed chief gave to a congressional committee. Powell has said the investigation was a pretext for President Donald Trump, a frequent critic of Powell, to secure greater influence over the Fed and its monetary policies.
The subpoenas issued by U.S. attorney Jeanine Pirro sought information regarding cost overruns on the renovation project.
When it was approved in 2017, the project’s budget was $1.9 billion, but later rose to $2.5 billion. The increase was attributed to rising labor and material costs, the discovery of asbestos and soil contamination, and extended construction schedules.
In a March 13 ruling, Boasberg found that the subpoenas were intended to “harass and pressure” the central bank chief into lowering interest rates or to drive him from office so a more compliant successor could be installed.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg said in the ruling.
“On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” the judge said at the time.
In that ruling, Boasberg recounted how Trump berated Powell in personal terms on Truth Social, saying he was not fit to be Fed chair.
That post was one of “at least 100 statements” that Trump or his deputies have made attacking Powell and applying pressure to him to lower interest rates, the judge said, adding that at a November 2025 event at the White House, Trump said, “I want to get him out.”
In his April 3 ruling, Boasberg said that because the “cursory” brief the federal government filed in support of its motion for reconsideration “neither offers new evidence nor points to any material error, the Court will deny the Motion.”
“The standard for reconsideration is a demanding one” that requires the moving party to show that since the original order was issued there has been a change in controlling law, new evidence has surfaced, or there is a need to correct an obvious error or prevent an injustice, he said.
“The Government’s arguments do not come close to convincing the Court that a different outcome is warranted,” Boasberg added.
In the government’s reconsideration motion, Pirro had argued that the judge “applied an incorrect legal standard” and had “erred with respect to certain significant facts.”
At a March 13 news conference, Pirro said Boasberg’s ruling that day had “neutered the grand jury’s ability to investigate crime.”
“As a result, Jerome Powell today is now bathed in immunity, preventing my office from investigating the Federal Reserve,” she said at the time. “This is wrong, and it is without legal authority.”
Attorneys for the Fed said in a reply brief that the motion should be denied because the government failed to meet “the demanding legal standard that applies to the extraordinary relief it seeks.”
Powell’s term as Fed chairman ends on May 15. Trump has nominated economist Kevin Warsh, a former member of the Fed’s board of governors, as his replacement.
Powell has said he will remain in the chairman post until a successor is confirmed by the U.S. Senate.
Approached by The Epoch Times, a Fed spokesman declined to comment.
The Epoch Times reached out to the U.S. Department of Justice for comment. No reply was received by publication time.
Reuters and Andrew Moran contributed to this report.
This article by Matthew Vadum appeared April 3, 2026, in The Epoch Times.