Judge Quashes Subpoenas After Prosecutor Concedes No Evidence Against Powell
Chief Judge James Boasberg quashed subpoenas after a prosecutor said the Justice Department had no evidence of criminality in the Fed's $2.5 billion renovation.
Daily BeastJudge Jeanine Minion Makes Bombshell Admission About Trump Enemy Probe
CNNProsecutor told judge no evidence existed to criminally pursue Powell over costly Fed renovations | CNN Business
Associated PressProsecutor conceded lack of criminal evidence in Federal Reserve investigation, transcript shows
AlterNetFirestorm erupts as Trump admin ridiculed after admitting lack of evidence
Overview
On March 11 Chief Judge James Boasberg quashed government subpoenas to the Federal Reserve, saying the government produced "essentially zero evidence" to suspect Chair Jerome Powell of a crime.
The Justice Department opened a criminal probe in January focused on a $2.5 billion renovation of the Federal Reserve's headquarters after Powell's testimony and months of criticism from President Donald Trump.
At a sealed March 3 hearing a prosecutor acknowledged the office "did not know at this time" what evidence existed of fraud or criminal misconduct while citing roughly $1.2 billion in cost overrun concerns.
The Fed's estimated project cost is $2.5 billion, about $600 million higher than a 2022 estimate of $1.9 billion, and prosecutors cited roughly $1.2 billion in overruns as a basis to investigate.
U.S. Attorney Jeanine Pirro vowed to appeal Boasberg's decision, and the investigation has delayed Senate consideration of President Trump's nominee Kevin Warsh to replace Powell, whose term ends May 15.
Analysis
Center-leaning sources frame the story as a weak, politically tainted investigation by foregrounding the prosecutor’s private concession and the judge’s “essentially zero evidence” language. Editorial choices — prominent placement of the ruling, descriptions like “severe blow,” and repeated political context (Trump, Pirro’s ties) shape a narrative of overreach despite including defendants’ quoted defenses.
FAQ
The probe focused on a $2.5 billion renovation of the Federal Reserve's headquarters, following Powell's testimony and criticism from President Trump, with prosecutors citing about $1.2 billion in cost overruns as a basis for investigating potential fraud or misconduct.
Judge Boasberg quashed the subpoenas after a prosecutor conceded that the Justice Department had 'essentially zero evidence' of criminality and did not know of any evidence of fraud or misconduct at the time.
Costs rose from $1.9 billion to $2.5 billion due to higher construction material and labor prices, more asbestos and lead than expected, unforeseen site conditions like water-table issues, historic preservation requirements, and inflation.
Jeanine Pirro is the U.S. Attorney who vowed to appeal Chief Judge Boasberg's decision to quash the subpoenas.
The investigation delayed Senate consideration of President Trump's nominee Kevin Warsh to replace Powell, whose term ends May 15.
