Hon. James Boasberg said a “mountain of evidence suggests” the legal summons was meant to pressure the Federal Reserve to cut interest rates
A US federal judge, James Boasberg, has quashed subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell, according to court documents unsealed on Friday.
The ruling is a major blow to US President Donald Trump, who has repeatedly criticized Powell for not lowering interest rates.
The subpoenas issued in January relate to Powell’s testimony before the Senate Banking Committee in June 2025 on cost overruns tied to the Fed’s building renovations. The project’s latest estimate of $2.5 billion is about $600 million higher than a 2022 figure of $1.9 billion, according to the Fed.
The ruling has also stalled Senate consideration of Kevin Warsh, Trump’s nominee to replace Powell when his term ends on May 15.
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