U.S. judge upholds revocation of Powell-related subpoena ruling, prosecutors vow to appeal

The U.S. Department of Justice’s request to continue investigating the issue of the Federal Reserve Building renovation costs was denied by the court, clearing the way for a subsequent appeal; the case could ultimately be taken to the U.S. Supreme Court.

U.S. District Court for the District of Columbia Chief Judge James Boasberg upheld the decision to quash two grand jury subpoenas issued by U.S. prosecutor Jeanine Pirro to the Federal Reserve. The subpoenas are linked to a criminal investigation involving expenditures for the Federal Reserve Building renovation project and the testimony given by Federal Reserve Chair Jerome Powell before Congress. Pirro’s office had asked Boasberg to reconsider his ruling on quashing the subpoenas.

In a ruling dated April 3, Boasberg said, “The government’s arguments are far from sufficient to persuade the court to reach a different decision.”

Jeanine Pirro

This ruling is the latest development in a legal dispute between the Federal Reserve’s independence and the Department of Justice’s investigative powers. The dispute could also further delay the confirmation process for the Federal Reserve chair nominee Kevin Warsh, whom President Donald Trump has nominated.

The Federal Reserve declined to comment.

Pirro’s spokesperson said, “We will absolutely appeal against the judicial branch’s interference with our use of the grand jury.”

Boasberg ruled in March to quash the related subpoenas, saying the Department of Justice failed to provide sufficient evidence.

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Editor: Li Zhaofu