Federal Judge James Boasberg rejected efforts by the Justice Department to revive subpoenas targeting Federal Reserve Chair Jerome Powell as part of a criminal investigation into building renovations. The judge wrote that 'The Government's arguments do not come close to convincing the Court that a different outcome is warranted,' according to multiple sources.
Key Takeaways
A federal judge rejected efforts by the Justice Department to revive subpoenas targeting Federal Reserve Chair Jerome Powell as part of an investigation into building renovations. Meanwhile, Powell addressed economic challenges including rising gas prices and a weak job market during a speech at Harvard University.
- Judge James Boasberg denied DOJ's request to reinstate subpoenas against Jerome Powell
- Subpoenas related to $2.5 billion Fed headquarters renovation project
- Justice Department plans to appeal the ruling
- Powell discussed economic challenges, including rising gas prices and weak job market, at Harvard University
- Senate Banking Committee schedules April 16 hearing for Kevin Warsh's nomination
The subpoenas, issued in January, were related to a $2.5 billion renovation project at the Federal Reserve headquarters and Powell's testimony before Congress about the project. Boasberg had previously blocked them, stating they were intended to pressure Powell into adjusting interest rates as President Donald Trump demanded. The Justice Department is both appealing the ruling and filed a separate motion asking Boasberg to reconsider his decision.
Meanwhile, Powell addressed rising gas prices and a challenging job market during a speech at Harvard University on Monday. The average gallon of gas in the U.S. rose to $3.99 overnight, according to motor club AAA. Powell emphasized the importance of monitoring inflation amid energy price spikes due to the Iran war, noting that while energy shocks tend to be temporary, a series of them could raise inflation expectations over time.
The job market has been lackluster, with employers adding fewer than 10,000 jobs per month in 2025—the weakest hiring outside a recession since 2002. This trend continued into early 2024, with the U.S. experiencing volatile employment numbers: 126,000 new jobs in January followed by 92,000 job losses in February. Powell expressed optimism over medium- to long-term economic growth and employment prospects despite these challenges.
During the question-and-answer session, Powell stressed the importance of maintaining the Federal Reserve's independence from political influence. The ongoing Justice Department investigation into renovations at Federal Reserve headquarters continues to delay Senate consideration of Kevin Warsh's nomination to replace Powell.
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