Court Tells DOJ to HODL Off: Powell's $2.5B Fed Renovation Subpoena Battle Ends in Failure

A federal court in Washington has shut down the Justice Department's attempt to reinstate grand jury subpoenas targeting Federal Reserve Chairman Jerome Powell and the Fed's board of governors. In a move that surprised absolutely no one who remembers that "independent" actually means something, U.S. District Judge James Boasberg wasn't having it.

U.S. District Judge James Boasberg wasn't having it. In his ruling, he called the government's justifications "far from convincing." The subpoenas sought documents about the Fed's controversial $2.5 billion headquarters renovation project—yes, you read that right, $2.5 billion to redo some government buildings. For that kind of money, you could buy a small country, mint your own stablecoin, or at minimum, get some really nice ergonomic chairs.

The probe apparently originated from Powell's own Senate Banking Committee testimony, where he mentioned the need to renovate the Marriner S. Eccles Building. Initial projections? $1.9 billion. Final cost after "design changes and increased expenses"? $2.5 billion. Someone really wanted those marble floors. Somewhere, a crypto project is screaming about tokenomics while the Fed is out here experiencing the same budget creep as every construction project since the dawn of civilization.

But here's the kicker: Judge Boasberg found "ample evidence" the subpoenas were designed to pressure Powell into lowering interest rates