Source: Fortune.com
Summary
A federal judge has quashed Justice Department subpoenas related to an investigation into Federal Reserve Chair Jerome Powell’s testimony about a $2.5 billion building renovation. The investigation, which has been criticized on Capitol Hill, has delayed Senate consideration of President Donald Trump’s pick to replace Powell, Kevin Warsh. The judge ruled that the government produced “essentially zero evidence” to suspect Powell of a crime and that the subpoenas were a pretext to pressure Powell to cut interest rates. The ruling blocks the Justice Department from obtaining records from the Fed related to the building renovation.
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The numbers tell one story.
The investigation into Powell’s testimony has been criticized as a move to pressure the Fed, which has been independent from day-to-day politics for decades. The judge’s ruling suggests that the subpoenas were a pretext to force Powell to yield to Trump’s demands. The investigation has delayed the Senate’s consideration of Warsh’s nomination, and Pirro’s plan to appeal could further delay the process. Powell’s future as a member of the Fed’s governing board remains uncertain.
The announcement sounds familiar: a federal agency under pressure from the White House, and a judge pushing back against what appears to be a politically motivated investigation.
Author: Evan Null
