Judge says 'no evidence' to justify Federal Reserve probe

March 13, 2026

A federal judge has halted a Department of Justice investigation into the Federal Reserve, siding with Fed Chair Jerome Powell's claim that the probe was politically motivated to pressure interest rate cuts. Judge James Boasberg determined that prosecutor Jeanine Pirro, a Trump ally appointed as US attorney for DC, provided no legitimate evidence of criminal wrongdoing and was instead using subpoenas related to Fed office renovation cost overruns as a pretext for harassment. Pirro plans to appeal the ruling, defending her investigation as legitimate despite the judge's finding that it served the improper purpose of forcing Powell to comply with President Trump's demands or resign.

Who is affected

Jerome Powell (Federal Reserve Chairman)
Jeanine Pirro (US Attorney for the District of Columbia/prosecutor)
Kevin Warsh (Trump's nominee to replace Powell)
President Donald Trump
The Federal Reserve as an institution
Senator Thom Tillis and other Republican senators in Congress
The Department of Justice

What action is being taken

Jeanine Pirro is appealing Judge Boasberg's decision
Senator Thom Tillis is blocking the appointment of a new Fed chairman until the investigation is resolved

Why it matters

This case represents a significant threat to Federal Reserve independence, a cornerstone principle that protects monetary policy decisions from political interference. The judge's finding that the investigation was pretextual rather than based on legitimate criminal concerns sets an important precedent against using prosecutorial powers to pressure the central bank into making policy decisions that align with presidential preferences. The outcome affects not only the current Fed leadership but also establishes boundaries for how the executive branch can interact with the independent central bank, which has far-reaching implications for economic stability and institutional integrity.

What's next

Senator Tillis stated that appealing the decision would only delay Kevin Warsh's confirmation. Pirro announced she will appeal the ruling. Senator Tillis has called on the DC US Attorney's Office to abandon the appeal and move on to allow Warsh's confirmation to proceed.

Read full article from source: BBC