A federal court has tossed two Justice Department subpoenas against Federal Reserve Chairman Jerome Powell after finding that “a mountain of evidence” exists to suggest the subpoenas were issued to pressure the Fed into lowering interest rates.
Powell announced in January that the DOJ launched an investigation into his testimony before Congress about cost overruns of renovations at the Fed’s headquarters. Powell accused the administration of targeting the Fed’s independence because President Trump was unhappy that the central bank did not lower interest rates at a faster pace.
In a decision unsealed today, U.S. District Judge James Boasberg pointed to more than 100 statements made by Trump and other administration officials attacking Powell and pressuring the Fed to lower interest rates. He said the government “has produced essentially zero evidence” of Powell committing any crimes. Rather, “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.”
“The court therefore finds that the subpoenas were issued for an improper purpose and will quash them,” Boasberg wrote.
