Lawyers for the Trump administration on Monday requested that U.S. District Judge James Boasberg reconsider his prior ruling, which had quashed a grand jury subpoena targeting Federal Reserve Chair Jerome Powell. This move appears to fulfill a previous commitment from Washington D.C. federal prosecutor Jeanine Pirro, who stated she would appeal to a higher court.
In the motion for reconsideration filed Monday, U.S. Department of Justice prosecutors argued that the court "applied the wrong legal standard, made clear errors on certain factual issues, and ignored other relevant facts." The prosecution contended that a subpoena should be permitted whenever there is a "reasonable possibility" that the category of materials sought by the government could yield information "relevant to the general subject of the grand jury's investigation." They argued that even if the subpoena recipient "advances plausible alternative motive theories," that should not automatically block the subpoena.
This filing came just two days after Judge Boasberg blocked two grand jury subpoenas issued to the Federal Reserve Board. The judge had concluded that these subpoenas were merely a "pretext" intended to pressure Powell into either lowering interest rates or resigning from his position as Fed Chair.
The Justice Department argued on Monday that the Federal Reserve Board "never denied" that the subpoenas sought materials directly related to the grand jury's investigation theme. This included budget overruns for the renovation of the Washington headquarters—estimated at over $1 billion, described as "quite staggering" even by Washington standards—and Powell's testimonies before Congress.
The request was submitted shortly after Judge Boasberg barred Prosecutor Pirro's office from proceeding with subpoenas for records and testimonies related to the Fed investigation. In his subsequently unsealed ruling, he stated the Justice Department presented no evidence whatsoever that Powell had committed any crime, aside from the fact that Powell had displeased Trump.
Judge Boasberg wrote, "Were the subpoenas issued for a legitimate prosecutorial purpose? The Court finds they were not. There is substantial evidence that the primary, if not sole, purpose of the subpoenas was to harass and pressure Mr. Powell—either to capitulate to the President or to resign, making way for a Fed Chair willing to do so."
This ruling stems from a criminal investigation initiated by Prosecutor Pirro in January, focusing on Powell's testimony before the Senate Banking Committee in June 2025. The investigation centers on the multi-year renovation project of the Fed's Washington headquarters.
Powell publicly disclosed the investigation in January, calling it an attack on the Federal Reserve's independence.
Last Friday, Pirro stated the Justice Department would appeal to a higher court, labeling the ruling "astonishing." At a press conference, she said, "This process has been arbitrarily disrupted by an activist judge." She accused Boasberg of positioning himself at the entrance to the grand jury, effectively shutting the door and preventing the grand jury from conducting its intended work.
If an appeal is filed, it could prolong former President Trump's efforts to remove Powell and install his preferred candidate, former Fed Governor Kevin Warsh. Republican Senator Thom Tillis of North Carolina referenced this possibility on social media last Friday.
On Sunday evening, Trump also criticized Judge Boasberg on Truth Social, claiming the judge suffers from "Trump Derangement Syndrome at its highest level" and accusing him of having "been after me and my team for years."
In his ruling last week, Judge Boasberg also cited numerous social media posts where Trump criticized Powell, pressured him on interest rates, and suggested replacing him as Fed Chair. Boasberg wrote, "In recent years, being perceived as an adversary of the President has become fraught with risk. In a second term, Trump has urged the Justice Department to prosecute such individuals, and the Department's prosecutors have complied with this demand."
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