The RecordExhibit 73
A criminal investigation of the Fed chair
Ruled unlawful means: A court ruled against it. Some rulings are on appeal.
The Justice Department served the Federal Reserve with grand jury subpoenas and threatened to indict then-Chair Jerome Powell over his testimony about a building renovation.
What happened
Trump had spent months attacking Powell for not cutting interest rates as fast as he wanted. Powell called the threat a pretext, saying it followed from the Fed setting rates for the public good rather than the president's preferences. Republican Sen. Thom Tillis vowed to block Fed nominees until the probe was dropped.
Where it stands
In March 2026 Judge James Boasberg quashed the subpoenas, writing that the government had produced essentially no evidence of a crime and that its reasons were a pretext to pressure Powell into cutting rates. He refused to revive them, and the Justice Department closed the investigation and referred the matter to the Fed's inspector general. On Sept. 30 the inspector general found management failures behind a roughly $1 billion cost overrun, but no grounds for a criminal referral and no administrative misconduct. Trump responded by calling on Powell to resign from the Fed board and asking the attorney general to study the report.
The administration's side
The White House said Powell is bad at his job and whether he is a criminal is up to DOJ. U.S. Attorney Jeanine Pirro called Boasberg an activist judge and said the ruling effectively made Powell immune from investigation. Trump says the renovation cost far more than it should have.
Sources
Permanent link: https://unredactedrecord.com/e/powell/