Federal Judge Quashes DOJ Subpoenas in Criminal Probe of Fed Chair Jerome Powell

A federal judge blocked Justice Department subpoenas issued in a criminal investigation against Federal Reserve Chair Jerome Powell on March 13, 2026, ruling that prosecutors had produced essentially no evidence to justify the probe. U.S. District Judge James Boasberg stated that the government had "produced essentially zero evidence to suspect Chair Powell of a crime," according to Reuters. The Justice Department said it plans to appeal the ruling. The unsealing of court filings that accompanied the decision revealed the scope of the legal confrontation between the executive branch and the nation's central bank.

Jerome Powell has served as the 16th chair of the Federal Reserve since 2018. The Federal Reserve's independence from political interference has been a foundational principle of U.S. monetary policy, with presidents historically refraining from directing criminal investigations toward sitting Fed chairs. Powell's current term as chair is set to expire, and President Donald Trump nominated Kevin Warsh — a financier and former Fed governor who served on the Federal Reserve Board of Governors from 2006 to 2011 — to succeed him in January 2026.

The Federal Reserve turned to a Biden-era special prosecutor to assist in fighting the subpoenas, according to Reuters. Powell's attorneys have also discussed the possibility of him remaining on the Fed's board of governors even after his term as chair ends, Reuters reported. The legal battle has drawn sharp reactions, with a quote attributed to critics of the ruling describing the judge as having taken "a tool away from us," according to TVN24. The Wall Street Journal characterized the court ruling as a double-edged sword for Powell, suggesting that while it offered him legal protection, it also complicated the broader political situation surrounding the Fed's leadership.

The ongoing litigation has placed Kevin Warsh's nomination to lead the Federal Reserve in a state of suspension. Warsh, a financier and former Fed board member, was nominated by Trump in January 2026 to succeed Powell, according to Reuters. His confirmation process remains on hold while the legal dispute between the Justice Department and Powell continues, Reuters reported. The confrontation between the Justice Department and the Fed chair has introduced significant uncertainty into the timeline for a leadership transition at the central bank. The New York Times reported that the Justice Department's legal threat has complicated Trump's plans for installing his chosen successor at the Fed. The DOJ's planned appeal means the legal fight is unlikely to be resolved quickly, leaving both Powell's status and Warsh's nomination in an unresolved state.