Federal prosecutors push back after judge blocks Powell subpoenas

A federal judge recently stopped prosecutors from asking for documents tied to renovations at the U. S. Federal Reserve’s headquarters. The judge also blocked requests for testimony from Fed Chair Jerome Powell about those expenses. The judge argued there was little proof of wrongdoing but plenty of signs the investigation was meant to pressure Powell into lowering interest rates or stepping down. Now, the Justice Department is asking the same judge to take another look at the decision. They claim the judge got the law wrong and misunderstood key facts. The prosecutors, led by a Trump-appointed U. S. Attorney, say the judge missed the point entirely. Meanwhile, the lead prosecutor has already promised to appeal if needed.This legal battle isn’t just about documents. It’s about who controls the Federal Reserve. The investigation could influence whether Powell stays in his role when his term ends soon. Some Republican leaders have even said they won’t support any new Fed chair until the case is resolved. Powell hasn’t backed down. He calls the renovations necessary and has invited lawmakers, including the former president, to tour the site. The judge pointed out that the government hasn’t shown Powell did anything illegal—just that he upset powerful people.