Judge Quashes Fed Chair Probe Subpoenas

WASHINGTON: A US federal judge has quashed subpoenas issued to the Federal Reserve in an investigation into its headquarters renovations. Judge James Boasberg ruled the subpoenas were politically driven, stating they aimed to pressure Chair Jerome Powell into lowering interest rates or resigning.

The Justice Department, led by prosecutor Jeanine Pirro, vowed to appeal the decision, calling it a threat to American justice. Powell had previously accused the probe of being a political attempt to undermine the Fed’s independence.

Republican Senator Thom Tillis said the ruling exposes the investigation as baseless and vowed to block future Fed nominations until the probe ends.

The Fed maintained its rate-hiking pause in January, with next week’s meeting expected to keep rates unchanged amid ongoing economic pressures from global conflicts and inflation concerns.