A federal judge dismissed subpoenas brought as part of a criminal investigation into Federal Reserve Chair Jerome Powell as “mere pretexts” in a decision issued on Friday.
The decision by Judge James Boasberg ends the investigation launched by the Trump administration on Jan. 10 into alleged abuses of taxpayer funds incurred during a renovation of the Federal Reserve’s headquarters. But many, including Powell, understood the investigation to be a pretext for removing him or pressuring him to lower interest rates according to President Donald Trump’s wishes. Boasberg agreed.
“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 who will,” Boasberg wrote. “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 Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts. It will therefore grant the Board’s Motion to Quash.”
The investigation marked the most public clash between a president and the Federal Reserve in its history as Trump sought to seize control of the independent agency. After the subpoenas became public, Powell released an extraordinary statement accusing the administration of creating “pretexts” to remove him from office.
