A federal judge has blocked subpoenas seeking records from the Federal Reserve as part of a criminal investigation involving Chair Jerome Powell.
Chief U.S. District Judge James Boasberg said prosecutors failed to show evidence that Powell committed a crime.
The investigation is said to have focused on cost overruns tied to renovations of Federal Reserve buildings and Powell’s testimony to Congress about the project.
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The Federal Reserve was served with grand jury subpoenas in January. Powell said the probe appeared to center on his congressional testimony last summer regarding renovations to the Federal Reserve’s headquarters in Washington. But in a recorded statement, he suggested the investigation could be broader.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said.
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Although President Donald Trump appointed Powell during his first term, the two have repeatedly clashed over interest rate policy during Trump’s second term.
On Thursday, Trump continued his criticism of Powell.
“Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping interest rates, IMMEDIATELY, not waiting for the next meeting!” Trump wrote on Thursday on Truth Social.
Trump’s comments came hours after the Bureau of Labor Statistics reported the consumer price index rose 2.4% in the 12 months ending in February. The rate has remained relatively steady but is slightly above the Federal Reserve’s 2% inflation target.
