Federal judge quashes Justice Department subpoenas of Fed Chair Jerome Powell, says probe was politically motivated

By Tierney Sneed, Jake Tapper, Bryan Mena, CNN

(CNN) — A federal judge has quashed subpoenas the Justice Department had issued against Federal Reserve Chair Jerome Powell, according to court documents unsealed Friday.

The ruling is a major blow to President Donald Trump, who has repeatedly criticized Powell for not lowering interest rates and urged the Justice Department to investigate the outgoing chair.

US District Judge James “Jeb” Boasberg wrote in the new opinion that a “mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning.”

“On the other side of the scale, the Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual,” Boasberg said.

The federal probe underscores the Trump administration’s intense pressure campaign Powell and the Fed in a bid to get the politically independent central bank to lower interest rates.

Trump continues to insult Powell on social media, calling him every name in the book, and his administration is currently trying to push out Fed Governor Lisa Cook, appointed by then-President Joe Biden, in a landmark case at the US Supreme Court.

Powell had stayed mostly mum in the face of Trump’s attacks, but just a few days after he was served with a subpoena in early January, the Fed chief released a remarkable video calling out the investigation as an affront to the Fed’s independence.

Powell’s term as chair expires in May and Trump in January nominated former Fed Governor Kevin Warsh to run the central bank. But Republican Sen. Thom Tillis, a key vote on the Senate Banking Committee that would confirm the nomination, has said the committee should not consider a vote until the criminal probe of Powell is resolved.

This story is breaking and will be updated.

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