Federal court quashes subpoenas against Fed’s Powell

A federal court has quashed two U.S. Department of Justice subpoenas targeting Federal Reserve Chairman Jerome Powell, finding substantial evidence they were issued to pressure the central bank to lower interest rates.

Powell said in January that the Justice Department had opened an investigation into his congressional testimony about cost overruns tied to renovations at the Federal Reserve’s headquarters. He accused the administration of undermining the Federal Reserve’s independence because Donald Trump was dissatisfied with the pace at which the central bank was cutting interest rates.

In an unsealed decision, U.S. District Judge James Boasberg cited more than 100 statements from Trump and other administration officials criticizing Powell and urging the Fed to lower borrowing costs.