A U.S. court has rejected the Department of Justice's request to continue investigating the renovation costs of the Federal Reserve building, paving the way for a subsequent appeal that may ultimately bring the case before the Supreme Court.
James Boasberg, Chief Judge of the U.S. District Court for the District of Columbia, upheld the ruling to quash two grand jury subpoenas issued by U.S. Attorney Jeanine Pirro to the Federal Reserve. These subpoenas were related to a criminal investigation into spending on the Fed building's renovation and testimony given before Congress by Federal Reserve Chair Jerome Powell. Pirro's office had asked Boasberg to reconsider his decision to dismiss the subpoenas.
In an April 3 ruling, Boasberg stated, "The government’s arguments fall far short of persuading the court to rule differently."
The ruling represents the latest development in a legal dispute between the Federal Reserve's independence and the Justice Department's investigative authority. The controversy could also delay the confirmation process for Kevin Warsh, a Federal Reserve chair nominee put forward by President Donald Trump.
The Federal Reserve declined to comment.
A spokesperson for Pirro stated, "We will absolutely appeal the judiciary's interference with our use of the grand jury."
Boasberg had ruled in March to dismiss the subpoenas, citing the Justice Department's failure to provide sufficient evidence.
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