In a 27-page opinion, Judge Boasberg (appointed by President Barack Obama) wrote unequivocally: “There is a mountain of evidence suggesting that the government issued these subpoenas to pressure its Chair into voting for lower interest rates or resigning to make way for a more compliant Fed Chair.” He added: “The government has produced essentially zero evidence that Chair Powell committed any crime other than displeasing the President.” An Investigation Launched in January… Quickly Challenged The criminal probe was opened in January 2026 by U.S. Attorney for the District of Columbia Jeanine Pirro, focusing on a multi-billion-dollar renovation project at the Fed’s headquarters that has seen significant cost overruns. The DOJ claimed possible false statements and fraud, particularly tied to Powell’s testimony before Congress. Powell responded unusually publicly at the time, releasing a video denouncing the probe as a “threat to the independence of the Federal Reserve.” Judge Boasberg fully endorsed that view, stating that the DOJ’s justifications were “so thin and unsubstantiated” that he could only conclude the effort was politically motivated and improper. The Explosive Context of Trump-Powell Tensions This case is the latest chapter in a years-long public feud between President Donald Trump and Jerome Powell. Re-elected in 2024, Trump has repeatedly attacked Powell for refusing to slash interest rates aggressively enough to boost economic growth, despite constant pressure via social media and public statements. Powell’s term as Fed Chair expires in May 2026. Trump has already nominated Kevin Warsh, a former Fed governor, as his replacement. However, key Republican Senator Thom Tillis (R-NC), a member of the Senate Banking Committee, has tied his support for Warsh’s confirmation to the resolution of this criminal probe. Tillis welcomed the ruling: “This investigation was nothing more than a failed attack on Fed independence. An appeal will only delay Kevin Warsh’s confirmation further.” Immediate Reactions: DOJ Vows to Appeal U.S. Attorney Jeanine Pirro held an impromptu press conference Friday evening, blasting the decision. “This judge placed himself at the door of the grand jury and slammed it shut!” she declared, insisting the probe was based on legitimate suspicions of false statements and fraud related to the renovation project. She immediately announced that the DOJ would appeal the ruling to the U.S. Court of Appeals for the D.C. Circuit. The White House has not issued an official comment yet. The Federal Reserve declined to comment. What This Means for Fed Independence This judicial victory is a significant blow to the Trump administration. It reinforces the long-standing principle of the Federal Reserve’s independence from political interference and sends a clear message: criminal investigations cannot be weaponized against monetary policymakers for policy disagreements. However, the appeal process could drag on for months, potentially keeping Powell in office longer and delaying Warsh’s confirmation. Financial markets are watching closely: any renewed pressure on the Fed could shift expectations for interest rates in 2026 and beyond. The case adds to other ongoing tensions, including efforts to remove Fed Governor Lisa Cook, which are also before the courts. In Summary Judge Boasberg has ruled decisively: no “judicial witch hunt” against Jerome Powell. For Trump, who has long sought a Fed fully aligned with his economic agenda, this is a stinging defeat… at least for now. The DOJ has vowed to fight on appeal. The saga continues, but the Federal Reserve’s independence has just scored a major point.