Judge upholds block on subpoenas to Fed's Jerome Powell
CNBC • • general
Key Points:
- U.S. District Judge James Boasberg upheld his previous decision blocking subpoenas related to a criminal investigation into Federal Reserve Chair Jerome Powell, preventing the probe from moving forward.
- The subpoenas, issued by Trump ally Jeanine Pirro, sought information on Fed headquarters renovation cost overruns and Powell's congressional testimony, but were deemed by Boasberg to be an improper attempt to pressure Powell.
- The Justice Department plans to appeal the ruling, with support from leadership, potentially delaying the confirmation of Trump’s nominee Kevin Warsh to succeed Powell as Fed chair.
- Senator Thom Tillis has pledged to block Warsh's nomination while the appeal is pending, and Powell has stated he will remain at the Fed until the investigation concludes.
- Prosecutors are investigating Powell for potential fraud and false statements but have not yet identified evidence of wrongdoing, and the court found no new evidence or legal errors to overturn the judge's initial ruling.
