Slap in Trump's face, judge saves Powell: 'She wanted to bend him to her will'
The chairman of the Federal Reserve has seen a federal judge quash the Justice Department's criminal investigation into his Senate testimony on the billion-dollar renovation of the headquarters of the most powerful central institution on the planet
Jerome Powell cashes in on an early and significant payback against Donald Trump. The Federal Reserve chairman, often the target of the tycoon's public invective, has seen a federal judge quash the Justice Department's criminal investigation into the testimony he gave to the Senate on the billion-dollar renovation of the headquarters of the most powerful central institution on the planet.
The Chief Judge of the US District Court, James Boasberg, in a thoughtful ruling released on Friday, ruled that the subpoenas issued by the Grand Jury constituted a 'mere pretext' aimed at putting pressure on the Fed. In short, it was a way to bend the central banker, whom the tycoon had also wanted at the head of the Fed in his first term, to the will of the White House on monetary policy: cutting rates to revive the economy in spite of growing inflationary pressures and even at the cost of burning the independence of the US Central Bank claimed by the markets.
"There is abundant evidence that the predominant (if not exclusive) purpose of these subpoenas is to harass and pressure Powell into either caving in to the president's wishes or resigning, leaving the job to a Fed chairman who is willing to do so," wrote Boasberg, a Barack Obama appointee. "The government has provided no evidence whatsoever that Powell has committed any crime other than displeasing the president.
The US Attorney for the District of Columbia, Jeanine Pirro, whose office conducted the investigation, did not take it well. An 'outrageous' ruling in tone and scope, 'Jerome Powell is now shrouded in immunity,' Pirro thundered at a press conference. She sharply criticised Boasberg because the judge 'stood in front of the grand jury's front door, slamming it violently, with no regard for the regular judicial process, thus preventing the grand jury from carrying out its institutional work,' Pirro noted, heralding a battle and an appeal of the ruling.
Future developments could pave the way for Trump's chosen candidate to replace Powell: the former Fed governor, Kevin Warsh. Republican Senator Thom Tillis, a staunch supporter of the independence of the Federal Reserve, effectively blocked Warsh's confirmation pending the end of the criminal investigation into Powell. The ruling 'confirms how weak and specious it is,' Tillis wrote on X. 'We all know how this will end: the US Attorney's Office for the District of Columbia should spare itself further embarrassment.
