Judge Quashes DOJ Fed Subpoenas, Says No Evidence of Crime in $2.5 Billion Renovation

A newly revealed transcript shows that during a sealed March 3 hearing, Assistant U.S. Attorney Andrew Massucco admitted the Justice Department had no identified false statements by Federal Reserve Chair Jerome Powell and 'do[es] not know' of any fraud or criminal misconduct tied to the Fed’s $2.5 billion headquarters renovation project. Eight days later, Chief Judge James Boasberg of the U.S. District Court for D.C. quashed DOJ grand jury subpoenas to the Fed, writing in a March 11 order that prosecutors had produced 'essentially zero evidence' to suspect Powell of a crime and blasting their justification as 'thin and unsubstantiated.' Boasberg, an Obama appointee, noted the government even refused his offer to privately submit additional evidence under seal, and he wrote that a 'mountain of evidence' suggests the subpoenas were really meant to pressure Powell to cut interest rates or resign. The probe, led by U.S. Attorney Jeanine Pirro’s office, has already delayed Senate consideration of Trump nominee Kevin Warsh to replace Powell when his term ends May 15, though Powell can stay on if no successor is confirmed. The clash underscores the stakes around Fed independence and the potential abuse of criminal investigative tools for political leverage over monetary policy, something legal analysts and market watchers are already flagging as a dangerous precedent.