March 13, 2026—A U.S. District Court ruled that a criminal investigation of the Federal Reserve by the D.C. Attorney is politically motivated rather than for a “proper purpose.” In January, the U.S. Justice Department issued grand jury subpoenas to the central bank relating to a $2.5 billion renovation at the Fed headquarters. The ruling asserts that President Trump “has long coveted control over interest rates and yearned to lower them to his advantage.”
A decision by District Court Judge James Boasberg effectively stops that investigation. He writes in Case 1:26-mc-00012-JEB:
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will. On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President. The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts. It will therefore grant the Board’s Motion to Quash.”
The decision upheld the central bank’s independence, at least momentarily. Judge Boasberg also noted that the investigation is part of a larger drive by President Trump and his administration to prosecute political opponents.
“Being perceived as the President’s adversary has become risky in recent years,” Boasberg wrote.
D.C. Attorney to Appeal
Saying the decision “neutered the grand jury’s ability to investigate crime,” U.S. Attorney for the District of Columbia Jeanine Pirro said she is appealing the decision.
Timeline:
- January 9, 2026: The U.S. Attorney’s Office for the District of Columbia served Subpeonas on the Board of Federal Reserve.
- February 3, 2026: Federal Reserve Board responded with a Motion to Quash the subpoena request, arguing that the purpose of the subpoenas was to pressure the Federal Reserve to lower interest rates.
- March 13, 2026: Judge issues memorandum upholding the Motion to Quash
Sources:
Motion to Quash Subpeonas
https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rs1.zWf.psn8/v0
Court Memorandum
