Powell Avoids Prosecution: 'No Evidence of Crime'

A US federal judge has put a stop to the Trump administration's legal attack on Fed Chairman Jerome Powell. The subpoenas against Powell have been declared invalid by the judge, who noted that there is “no evidence whatsoever” that Powell committed a crime.

Earlier this year, the U.S. Department of Justice issued the subpoenas. The matter revolves around Powell's statements in the Senate regarding the renovation of Fed buildings in Washington. From the beginning, Powell has viewed these accusations as a pretext intended to pressure him and thereby exert influence on the Fed's interest rate policy.

Central couches Globally, including De Nederlandsche Bank and the ECB, they have publicly expressed their support for Powell. The federal judge also appears to agree with Powell's interpretation of the events. The judge states that there is sufficient evidence that the subpoenas were intended to pressure Powell to lower interest rates or to resign.

Purpose of the charges

According to the judge, the sole purpose of the charges appears to be to obstruct Powell “until he gives in to the president.” Trump or makes room for a chairman who does listen to Trump.” The judge labeled the Public Prosecution Service’s arguments as “weak and unfounded”.

Whether this ruling actually puts an end to the pressure on Powell remains uncertain. The public prosecutor has announced he will appeal and denies that the investigation is politically motivated. Trump has not yet responded substantively to the ruling, but has reiterated his call for the Fed to lower interest rates.

This case fits into a broader pattern in which the Trump administration attempts to exert influence over the formally independent Fed. Earlier attempts to fire Fed Governor Lisa Cook were also blocked by the judge. According to Trump's Treasury Secretary Scott Bessent, the subpoenas have created "chaos" in the financial markets.

With this ruling, Powell has at least received legal protection to complete his term, which ends in May, with integrity.