Powell DOJ Probe Halted After Judge Blocks Subpoenas
Judge blocks subpoenas in the Powell DOJ Probe, forcing an appeal and keeping political scrutiny of the Fed that complicates rate narratives.
KEY TAKEAWAYS
- A judge blocked two DOJ subpoenas to the Federal Reserve Board, pausing investigators' ability to compel Fed records.
- U.S. Attorney Jeanine Pirro said she would appeal, moving the dispute to appellate courts.
- The probe targets alleged cost overruns in Fed headquarters renovations and raises questions about political pressure on rates.
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On March 13, 2026, a federal judge blocked subpoenas in the Powell DOJ probe targeting alleged cost overruns at Federal Reserve headquarters. U.S. Attorney Jeanine Pirro said she would appeal, highlighting claims of political pressure on monetary policy.
Judge Blocks Subpoenas in Fed Renovation Probe
The subpoenas, issued in January 2026 to the Federal Reserve Board, were challenged by the Fed as improper. The criminal investigation is led by U.S. Attorney Jeanine Pirro of the District of Columbia. A court filing described the judge’s rejection of the subpoenas in scathing terms, halting the Justice Department’s immediate ability to enforce them.
The ruling sends the dispute to appellate courts, where judges will decide whether prosecutors can compel the Fed to produce internal documents related to the renovations. The outcome will determine if investigators gain access to records tied to the alleged cost overruns.
Pirro has defended the inquiry, saying earlier this year that the probe arose after Powell refused to engage on the overruns. She announced plans to appeal the ruling, keeping the investigation active.
Political Stakes for Federal Reserve Independence
The probe originated from Federal Reserve Chair Jerome Powell’s June 2025 congressional testimony about the Washington headquarters renovation. It focuses on alleged cost overruns linked to that project. Powell has characterized the investigation as political intimidation aimed at influencing the Fed’s interest-rate decisions. On March 12, he reached out to a group of lawmakers amid the dispute’s escalation.
Senator Thom Tillis has urged the Justice Department to end the probe and acknowledge an error, framing it as a mistake the department should correct. With the judge’s ruling under appeal, the legal battle will continue, prolonging political scrutiny of the Fed’s rate-setting process while courts consider whether the subpoenas can be enforced.
