Judge Again Rejects DOJ Bid to Revive Powell Renovation‑Cost Subpoenas, Citing Political‑Vendetta Concerns
Chief Judge Christopher Boasberg on April 3 denied the Justice Department’s request to reconsider his March decision quashing two subpoenas to the Federal Reserve seeking records about a $2.5 billion headquarters renovation and allegations that former Fed chair Jerome Powell misled Congress, saying DOJ offered no new evidence, lacked a good‑faith basis, and that the subpoenas appeared driven by a political vendetta. The ruling leaves the subpoenas dead for now but paves the way for an anticipated DOJ appeal that could complicate or delay confirmation of President Trump’s Fed nominee Kevin Warsh, amid public denunciations from Powell and other former Fed chairs and concerns from some senators.
📌 Key Facts
- Chief Judge James E. Boasberg issued a new six‑page opinion on April 3 denying the Justice Department’s request to reconsider his March decision quashing two subpoenas to the Federal Reserve.
- Boasberg found DOJ presented no new evidence and identified no material legal error in his earlier order, and wrote that the DOJ’s “total lack of a good‑faith basis to suspect a crime” is relevant to the subpoenas’ true purpose.
- The judge reaffirmed his March 13 finding that there was “a mountain of evidence” the subpoenas were used to pressure former Fed Chair Jerome Powell to vote for lower interest rates or to resign, saying the probe appears driven by “a political vendetta.”
- The underlying subpoenas sought records related to a $2.5 billion renovation of the Federal Reserve’s Washington headquarters and stemmed from an allegation that Powell knowingly misled Congress about those costs.
- Boasberg’s denial leaves the subpoenas quashed for now but clears the procedural path for a DOJ appeal; any formal appeal could delay confirmation of President Trump’s nominee to succeed Powell, Kevin Warsh.
- Powell was publicly defended by every living former Fed chair, who denounced the investigation as partisan pressure, and Republican Sens. Thom Tillis, Kevin Cramer and Lisa Murkowski raised concerns—Tillis said he would not support Trump’s Fed pick while Powell was under criminal investigation.
📊 Relevant Data
This is the first time in history that a chair of the Federal Reserve has been the subject of a criminal investigation by the Justice Department.
What to Know About the Criminal Investigation of the Fed Chair — The New York Times
Financial crime prosecutions disproportionately involve people who are low-income and people who are Black, suggesting regressive enforcement patterns in white-collar crime.
Regressive White-Collar Crime — Southern California Law Review
Presidents have historically criticized the Federal Reserve, with examples including Richard Nixon pressuring the Fed for political gain and Lyndon B. Johnson clashing over monetary policy in 1965.
How Immune Is the Federal Reserve From Political Pressure? — Econofact
White-collar offenders of higher socioeconomic status often receive lighter sentences compared to those of lower status, contributing to disparities in criminal justice outcomes.
White-Collar Crime: Diversity and Discrimination in Sentencing — Seattle Pacific University Digital Commons
📰 Source Timeline (5)
Follow how coverage of this story developed over time
- The article quotes directly from Chief Judge James E. Boasberg’s April 3 order that the DOJ’s motion “ignores the fact that its total lack of a good-faith basis to suspect a crime is relevant to the second, separate question of the subpoenas’ true purpose.”
- It reiterates and contextualizes Boasberg’s March 13 finding that there was “a mountain of evidence” the subpoenas were used to pressure Powell into voting for lower interest rates or resigning.
- It ties the failed reconsideration motion to the impending confirmation process for Kevin Warsh, President Trump’s pick to replace Powell when his term ends next month, noting that any formal DOJ appeal could complicate that confirmation.
- The story specifies that the underlying subpoenas sought records related to a $2.5 billion renovation of the Federal Reserve’s Washington headquarters and that the probe alleged Powell knowingly misled Congress about those costs.
- It reports that Powell was joined by every living former Fed chair in publicly denouncing the investigation as partisan pressure, and notes concerns raised by Republican Sens. Thom Tillis and Kevin Cramer and Sen. Lisa Murkowski, including Tillis’ vow not to support Trump’s Fed pick while Powell is under criminal investigation.
- MS NOW reports that a federal judge on Friday 'reaffirmed his decision to block subpoenas from the Justice Department to the Federal Reserve' and said the probe appears driven by 'a political vendetta.'
- The piece frames the reaffirmation as 'setting the stage for an appeal by the Trump administration.'
- Axios reiterates that Judge Christopher Boasberg has refused DOJ’s request to bring back the quashed subpoenas seeking information from the Federal Reserve related to former Chair Jerome Powell.
- The article reinforces that DOJ failed to persuade the court it had new evidence or a legal basis to change the prior ruling, leaving the subpoenas dead for now.
- Axios further underlines that, procedurally, DOJ’s next step is to appeal, a move that could delay confirmation of President Trump’s new Fed nominee.
- Boasberg issued a new six‑page opinion denying the Justice Department’s request that he reconsider his March decision quashing two subpoenas to the Federal Reserve.
- In the new ruling, Boasberg says DOJ offered no new evidence and identified no material legal error in his earlier order.
- The WSJ notes that this denial effectively clears the procedural path for an appeal that could delay confirmation of President Trump’s pick to succeed Powell at the Fed.