President Trump nominates Kevin Warsh as Federal Reserve Chairman candidate
Former Federal Reserve President Kevin Warsh could succeed Jerome Powell as Fed chairman, subject to Senate confirmation.
March 13 (Reuters) – A federal judge on Friday blocked a subpoena issued by the U.S. Department of Justice as part of a criminal investigation into Federal Reserve Chairman Jerome Powell’s handling of renovations of historic buildings used by the central bank.
Jeanine Pirro, the U.S. attorney for the District of Columbia who is leading the investigation, has vowed to appeal Chief District Judge James Boasberg’s decision. Powell, a frequent target of President Donald Trump’s ire, has argued that the investigation is a pretext for the Republican president to increase his influence over the Fed and monetary policy.
On January 11, Chairman Powell announced a Justice Department investigation into plans to renovate the historic building at the Fed’s headquarters in Washington. The Fed’s Board of Governors has filed a motion to cancel a subpoena seeking information about the renovations and Chairman Powell’s testimony before the Senate Banking Committee in July 2025.
Chairman Powell said the investigation was a threat to the Fed’s independence and part of President Trump’s attempt to pressure the Fed to lower interest rates.
The judge agreed, saying there was “mountainous evidence” suggesting the investigation was aimed at pressuring the Fed chairman to cut interest rates or resign.
“The government has presented virtually no evidence to impugn Chairman Powell’s crimes. In fact, the justifications are so tenuous and baseless that the court has no choice but to conclude that they are pretexts,” Boasberg wrote.
Pirro, who was appointed by President Trump, told reporters that the judge “nullified the grand jury’s ability to investigate crimes. As a result, Jerome Powell today has immunity,” and told reporters that the alleged violation of the law was sufficient reason to pursue the case.
Republican Sen. Thom Tillis has vowed to use his position on the Senate Banking Committee to block Fed nominees while the investigation continues, effectively freezing Mr. Trump’s nomination to replace Mr. Powell as Fed chairman when his term ends in mid-May.
(Reporting by Ismail Shakil, Andrew Goudsward, Jasper Ward, Ann Saphir; Editing by Franklin Paul and Will Dunham)
