REGULATORY · USA
Judge blocks DOJ probe of Federal Reserve
Change
A US judge blocked the Department of Justice's efforts to investigate the Federal Reserve.
Why it matters
Judge James Boasberg ruled that prosecutor Jeanine Pirro presented "no evidence" to justify her demands for information from the Federal Reserve. The court discarded subpoenas that sought documents about cost overruns at renovations of Federal Reserve offices. Jeanine Pirro called the decision "outrageous" and said it "neutered" her ability to investigate crime. Pirro announced she will appeal and stated that prosecutors typically do not have to produce evidence at this stage. Pirro dismissed questions about whether her pursuit would delay plans to replace Federal Reserve chair Jerome Powell when his term ends in May, and the Federal Reserve declined to comment.
Implications
- • The Department of Justice cannot use the discarded subpoenas to obtain Federal Reserve records on office renovation cost overruns.
- • An appeal has been announced, creating ongoing litigation over the subpoenas' legal status.
- • The dispute complicates White House efforts to install a new Federal Reserve chair.
Who is affected
- • Department of Justice prosecutors
- • Federal Reserve leadership
- • White House officials responsible for Fed chair selection
What to watch
- • Jeanine Pirro's appeal filing
- • Expiration of Jerome Powell's Fed chair term in May
Source
Topics
World & Politics Governance Law & Public Safety Court Rulings Finance & Banking Banking Regulation