A US federal judge has blocked a U.S. Department of Justice investigation into the Federal Reserve, saying there was “no evidence” to justify the probe.
In a ruling issued on Friday, James Boasberg said federal prosecutor Jeanine Pirro failed to provide sufficient grounds for demanding internal information from the US central bank. The decision cancels subpoenas issued by Pirro’s office that sought documents related to alleged cost overruns in renovations at Federal Reserve offices.
The ruling is seen as a major victory for the Federal Reserve, which has faced growing scrutiny amid political tensions in United States over the independence of the central bank.
Pirro quickly criticized the decision, saying she plans to appeal. At a press conference, she argued that the judge’s ruling had “neutered” her ability to investigate possible wrongdoing and accused the court of interfering with law enforcement efforts.
The case has drawn attention partly because it intersects with political efforts by Donald Trump’s administration to change leadership at the Federal Reserve. The current chair, Jerome Powell, has often been at odds with Trump over monetary policy.
Some Republican lawmakers have said they will block Trump’s nominee to replace Powell, Kevin Warsh, until questions surrounding the investigation are resolved.
The dispute has intensified debate in Washington about whether political actors are attempting to exert pressure on the Federal Reserve, an institution traditionally designed to operate independently from the government when setting monetary policy.
