The subpoenas were issued to the Fed by the office of Attorney General Jeanine Pirro in Washington, D.C. She is a former Fox News host who was appointed as prosecutor by President Donald Trump.
President Donald Trump had repeatedly attacked Powell for not lowering the policy rate as quickly as he wanted when it became known in January that a criminal investigation had been opened against Powell, linked to a renovation of the Fed's office.
The threat of prosecution is controversial and Powell is receiving support both nationally and internationally.
Tried to pressure Powell
In a statement released Friday, Judge James Boasberg blocked the lawsuits. He wrote that there is every indication that the government tried to pressure Powell “to vote for lower interest rates or to resign,” and he continued:
“The government has presented essentially zero evidence that Chairman Powell can be suspected of a crime; in fact, its justifications are so thin and unfounded that the court can only conclude that they are pretexts.”
Prosecutor Pirro said that Boasberg's decision will be appealed.
"This process has been arbitrarily undermined by an activist judge," she said at a press conference on Friday.
“Weak and frivolous”
Republican Senator Thom Tillis has said he will block the Senate's confirmation of Kevin Warsh, nominated by Trump to be the new Fed chief, until the investigation into Powell is closed.
In a post on X on Friday, Tillis wrote that Boasberg's decision shows how "weak and frivolous" the investigation into Powell is and that it is "a failed attack on the Fed's independence."
“We all know how this will end and the U.S. Attorney’s Office in Washington, D.C., should avoid further embarrassment,” Tillis added.
