Judge Blocks Grand Jury Subpoenas Against Fed Chair Powell, DOJ Vows to Appeal

President Trump has long pressured Federal Reserve Chair Jerome Powell to cut interest rates more sharply, but that effort suffered a major legal setback. Friday U.S. District Judge James Boasberg blocked grand jury subpoenas issued to the Federal Reserve as part of a criminal investigation into Powell, ruling there was "a mountain of evidence" the subpoenas were issued to pressure the Fed into cutting rates and "essentially zero evidence" of any actual crime. Pirro called the ruling "outrageous," and the DOJ immediately announced an appeal. The decision effectively keeps Powell in his chair past his May term expiration, as Senator Thom Tillis, R-N.C., has vowed to block nominee Kevin Warsh's confirmation until the investigation concludes. Rate cut hopes are further complicated by the Iran war, with soaring energy costs pushing market expectations for any reductions to year-end, down from at least two cuts previously expected.