The latest slap from the judges to Trump: "zero evidence" against Fed Chair Powell

With an order made public on March 13, 2026, Federal Judge James Boasberg annulled the subpoenas issued by the Department of Justice against the Federal Reserve and its chairman, Jerome Powell.

In his reasoning, the magistrate noted that the indictment had "essentially zero evidence" and a clear "pretextual use" of investigative tools. The measures, signed in January by Federal Prosecutor Jeanine Pirro, aimed to "dominantly" exert pressure on Powell to either resign or accelerate the easing of rates, in line with the direction of the White House.

The executive branch, moreover, did not take advantage of the opportunity granted by the court to submit additional confidential elements in support of its thesis. Formally, the investigation stemmed from alleged inconsistencies in Powell's testimony to the Senate in the summer of 2025 regarding the modernization project of the Fed's headquarters.

The construction site, initiated in 2022, saw the budget increase from $1.9 to $2.5 billion for necessary seismic, energy, and security upgrades. Although Powell had requested an independent review from the Inspector General as early as July 2025, the prosecution used that extra cost as the basis for the lawsuits.

The court dismantled the accusation, deeming it based on "thin and uncorroborated justifications", but Pirro labeled the decision as "wrong" and announced an immediate appeal. Behind the construction dispute, however, lies the true crux of the institutional conflict: monetary policy and the independence of the central bank. The legal pressures exposed by the judge aimed to push the Fed towards faster rate cuts, perfectly in line with the strong demands of President Donald Trump.

The recourse to a criminal investigation to bend an independent economic body — whose function is to ensure maximum employment and price stability shielded from political contingencies — has raised a systemic alarm. The clash has already produced concrete effects, freezing the delicate succession process at the top of the institution. Powell's term ends on May 15, 2026 and the presidency has designated Kevin Warsh as his successor. However, Republican Senator Thom Tillis has blocked the process in the Senate Banking Committee, calling the Pirro inquiry “weak and pretextual” and conditioning his approval on the definitive dismissal of the criminal proceedings. The clear ruling from Boasberg would now provide the conditions to turn the page, but the Department of Justice's appeal risks prolonging a very dangerous standoff for the future of the central bank, leaving the Senate in a stalemate filled with uncertainties.