Jerome Powell DOJ probe: Everything you need to know

In an apparently major legal victory for the United States Federal Reserve Chair Jerome Powell, a federal judge quashed Department of Justice’s subpoenas against the investment banker.

According to the court documents unsealed on Friday, U.S. District Judge James “Jeb” Boasberg slammed the government’s action against Powell, saying, it looks like the Government served these writs on the Board to pressurise the Chair into voting for lower interest rates.

This judgement serves as a major blow to the U.S. President Donald Trump who has repeatedly criticized the Fed Chair for not lowering interest rates. 

He has already announced a replacement for Jerome Powell, whose tenure as Federal Reserve chair is set to end in May 2026.

Former Federal Reserve governor Kevin Warsh has been named as the next chair of the Federal Reserve.

Boasberg said, “The government provided zero evidence to substantiate their claims about Powell’s involvement in a crime,” adding, “The justifications are so thin that the Court can only conclude that they are pretextual.”

Washington, D.C., U.S. Attorney Jeanine Pirro, who launched the investigation against Powell, announced to appeal the ruling.

In a press conference on Friday, Pirro denied the accusations of the probe being politically motivated, adding, “We are focused on the law and not on politics.”

The investigation centres on alleged false statements to the government and possible fraud.

Jerome Powell and U.S. President Donald Trump have yet to respond to the ruling.