Judge Blocks DOJ Probe Into Federal Reserve [Video]

A federal judge halted the criminal investigation that the Justice Department (DOJ) was driving into the Federal Reserve. The judge said it was just another way for the Trump administration to pressure the central bank into cutting interest rates.

The Ruling

Judge James Boasberg quelled subpoenas issued to the Federal Reserve in January, seeking information about possible excessive costs in the renovation of the Federal Reserve headquarters. Fed chair Jerome Powell called the subpoenas a pretext, and Judge Boasberg agreed.

The judge wrote: “The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President. 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.”

Judge Boasberg quoted President Trump and his aides from some of the comments made about Powell for failing to make deeper cuts to the interest rates.

Sen. Thom Tillis (R-N.C.) praised the judge’s decision.

“This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is, and it is nothing more than a failed attack on Fed independence. We all know how this is going to end, and the D.C. U.S. Attorney’s Office should save itself further embarrassment and move on,” Tillis wrote on social media.

DOJ to Appeal Federal Reserve Win

U.S. Attorney Jeanine Pirro promised to appeal the decision and called Boasberg an “activist judge.”

“He has neutered the grand jury’s ability to investigate crime. As a result, Jerome Powell today is now bathed in immunity,” she said during a news conference after the decision was unsealed.

She added: “Politics is not the lane I’m in right now. We are focused on the law. We’re focused on the people of the District. We are not focused on politics.

“This is the antithesis of American justice. This judge put himself at the entrance door to the grand jury, slamming that door shut.”

Pirro asserts the investigation also addressed false statements made to the government and a fraud charge, stressing it would be up to the grand jury to decide whether to bring any charges.

Powell was served the subpoena in January and responded via video, calling the investigation an affront to the independence of the Federal Reserve.

His term as chair expires in May. In January, Trump nominated former Fed Governor Kevin Warsh to replace Powell. However, Tillis is a key vote on the Senate Banking Committee that confirms nominations, and said the committee should not consider voting until the criminal probe is resolved.

Republicans have a slim majority in the Senate Banking Committee and would need Tillis on board to confirm Warsh. On Friday, Tillis described the probe as “nothing more than a failed attack on Fed independence.”

Trump has expressed his frustration with prosecutors concerning their inability to bring viable charges against his enemies.

Judge Boasberg’s ruling in a high-stakes immigration case last year put the administration on the defensive and resulted in the judge pursuing a contempt inquiry into officials who may have violated his ruling.

Trump was rebuked by Chief Justice John Roberts for trying to have Boasberg impeached, saying litigants should instead appeal adverse rulings.

Meanwhile, Trump continues to insult Powell on social media, and his administration is attempting to push out Biden-appointed Fed Governor Lisa Cook.

Sources:

NPR: Judge blocks DOJ’s criminal probe of Federal Reserve, blasting it as political
CNN: Federal judge quashes Justice Department subpoenas of Fed Chair Jerome Powell
The Hill: Judge quashes grand jury subpoenas of Fed, Jerome Powell in renovations probe

Featured Image Courtesy of Taber Andrew Bain’s Flickr Page – Creative Commons License