Judge rejects Department of Justice bid to reinstate Powell subpoenas

A U.S. judge on Friday stood by his decision to quash Department of Justice subpoenas targeting Federal Reserve chair Jerome Powell.

Why it matters: The ruling is the latest development in the Trump administration's unprecedented investigation into the nation's top central banker.

• The government can appeal the decision, prolonging a standoff that could delay the confirmation of Kevin Warsh — President Trump's pick to replace Powell.

Driving the news: The U.S. District Court for Washington, D.C., denied the government's motion to reconsider an earlier decision to throw out the grand jury subpoenas directed at Powell.

Flashback: Judge James Boasberg, the court's chief judge, quashed the subpoenas last month on the grounds that the probe was aimed at pressuring Powell into yielding to Trump or resigning.

• In the aftermath of the decision, the U.S. attorney for the District of Columbia, Jeanine Pirro, said at a press conference that the investigation process had been "arbitrarily undermined by an activist judge."

Zoom in: Powell disclosed in January that he received subpoenas seeking records related to the central bank's multibillion-dollar building renovations.

• The government was examining whether Powell had committed fraud and lied to Congress about those renovations.

What they're saying: Boasberg doubled down on his previous position in a sharply worded opinion on Friday.

• "The Government's arguments do not come close to convincing the Court that a different outcome is warranted," the judge wrote.
• "The Government's fundamental problem is that it has presented no evidence whatsoever of fraud."

A spokesperson for the U.S. attorney for the District of Columbia said: "We will absolutely appeal the judiciary's interference with our access to the grand jury."

The intrigue: Warsh is in confirmation limbo as long as the DOJ presses ahead on its investigation into Powell, whose term expires next month.

• Sen. Thom Tillis (R-N.C.), a key Republican on the Senate Banking Committee, has repeatedly vowed to block Warsh's confirmation until the investigation is resolved.

Editor's note: This story has been updated with a statement from the U.S. attorney's office in Washington, D.C.

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