A U.S. judge has blocked a Department of Justice probe into the Federal Reserve, ruling that prosecutors presented no evidence to justify subpoenas seeking information about office renovations. Judge James Boasberg concluded the investigation was driven by an improper purpose: pressuring Fed Chair Jerome Powell to lower interest rates.
The decision is a major victory for Powell, who called the probe a political tactic to influence monetary policy. Prosecutors, led by US Attorney Jeanine Pirro, have vowed to appeal, calling the ruling "outrageous" and claiming it undermines their authority.
Senator Thom Tillis of North Carolina said the outcome confirms the investigation is baseless, warning he will block any nominee until the matter is resolved. Trump’s pick to replace Powell, Kevin Warsh, now faces delays amid the controversy.
The Federal Reserve declined to comment on the ruling.