In Re Grand Jury Subpoenas

CourtDistrict Court, District of Columbia
DecidedMarch 13, 2026
DocketMisc. No. 2026-0012
StatusPublished

This text of In Re Grand Jury Subpoenas (In Re Grand Jury Subpoenas) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Grand Jury Subpoenas, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

In re Grand Jury Subpoenas Nos. &

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,

Petitioner, v. Miscellaneous Action No. 26-12 (JEB)

UNITED STATES OF AMERICA,

Respondent.

MEMORANDUM OPINION

“Jerome ‘Too Late’ Powell has done it again!!! He is TOO LATE, and actually, TOO

ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair. He is costing our

Country TRILLIONS OF DOLLARS . . . . Put another way, ‘Too Late’ is a TOTAL LOSER, and

our Country is paying the price!” Donald J. Trump (@realDonaldTrump), Truth Soc. (July 31,

2025, at 7:11 AM), https://perma.cc/PX9L-RPSD. That is one of at least 100 statements that the

President or his deputies have made attacking the Chair of the Federal Reserve and pressuring

him to lower interest rates. See generally ECF No. 14-1 (Reply to Mot. to Quash) (collecting

statements). So is this: “‘Too Late’ Jerome Powell is costing our Country Hundreds of Billions

of Dollars. He is truly one of the dumbest, and most destructive, people in Government . . . .

TOO LATE’s an American Disgrace!” Donald J. Trump (@realDonaldTrump), Truth Soc. (June

19, 2025, at 10:04 AM), https://perma.cc/748P-CN6T.

1 Yet the President has been unable to push rates lower through social-media posts. He has

thus hinted at other options: “I want to get him out . . . .” President Trump Delivers Remarks at

the U.S.-Saudi Investment Forum, White House (Nov. 19, 2025),

https://www.whitehouse.gov/videos/president-trump-delivers-remarks-at-the-u-s-saudi-

investment-forum/ (video at 42:01–42:58). Several months ago, he mused that if the Fed does

not cut rates, “I may have to force something.” Alex Gangitano, Trump Calls Jerome Powell

“Numbskull,” Says He May “Force Something” on Fed, The Hill (June 12, 2025),

https://thehill.com/homenews/5346728-trump-jerome-powell-interest-rates/. Appointed officials

and the White House Press Secretary have taken up the call. See Pulte (@pulte), X (July 2,

2025, at 11:43 AM), https://perma.cc/22DT-7TH3 (Federal Housing Finance Agency Director

William Pulte calling on Congress to investigate Powell); Fed’s Powell Responds to White

House on Fed Headquarters Renovation, Reuters (July 17, 2025), https://perma.cc/8CVF-FW4M

(White House Press Secretary announcing that “the administration, led by the president, is

looking into” Fed’s renovations).

Perhaps it comes as no surprise, then, that the D.C. U.S. Attorney’s Office has recently

opened a criminal investigation into Powell. It has served two subpoenas on the Federal Reserve

Board of Governors, seeking records about recent renovations of the Board’s buildings and

testimony that Powell delivered to Congress that briefly discussed those renovations. The Board

has now responded with a Motion to Quash, contending that the subpoenas are merely part of the

gameplan to pressure Powell to bend to the President’s wishes or to get rid of him. The case thus

asks: Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did

not. There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass

and pressure Powell either to yield to the President or to resign and make way for a Fed Chair

2 who will. On the other side of the scale, the Government has offered no evidence whatsoever

that Powell committed any crime other than displeasing the President. The Court must thus

conclude that the asserted justifications for these subpoenas are mere pretexts. It will therefore

grant the Board’s Motion to Quash. It will also grant the Board’s Motion to Partially Unseal the

Motion to Quash, related briefing, and this Opinion.

I. Background

A. Factual Background

Monetary policy poses a constant tradeoff: lowering interest rates can create jobs and lift

wages, but it can also speed up inflation. The full force of those effects does not arrive

simultaneously; instead, lower rates can trigger a quick boom, while the inflation that they spur

often does not fully kick in until later. See William D. Nordhaus, The Political Business Cycle,

42 Rev. Econ. Stud. 169, 170 (1975). Those short-term benefits and long-term costs create a

conflict between what is best for incumbent politicians and what is best for the nation’s long-

term economic stability. Id. at 184–85; Alberto Alesina, Macroeconomics and Politics, 3 NBER

Macroeconomics Ann. 13, 39–40 (1988). No politicians are more accountable for the nation’s

economic performance — and so more tempted to cut rates for immediate gain — than our

presidents.

Congress foresaw that danger. It therefore entrusted rate-setting to the Federal Reserve

and shielded it from political pressure. Under the system that Congress created, a target interest

rate is set by the Federal Open Market Committee. See 12 U.S.C. § 263(b); About the FOMC,

Bd. of Governors of the Fed. Rsrv. Sys. (Feb. 18, 2026), https://perma.cc/UQ4W-C5XF. The

FOMC is composed of the Governors of the Federal Reserve Board — who can be removed only

for cause, see 12 U.S.C. § 242 — and members from the Fed’s regional reserve banks (like the

3 Federal Reserve Bank of New York), in whose selection the President plays no role. Id.,

§ 263(a).

President Trump has long objected to that insulation and has strenuously pushed for

lower rates. “I feel that the president should have at least [a] say in [interest rates],” he has said,

“[Y]eah, I feel that strongly.” Jeanna Smialek, Trump Suggests That President Should Have a

“Say” in Interest Rates, N.Y. Times (Aug. 8, 2024), https://perma.cc/QE6A-9CGK. After

hectoring the Fed to lower rates and expressing his frustration that it has not listened, Trump

joked, “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”

President Trump Calls Fed Chair Powell Stupid, C-SPAN (June 18, 2025), https://www.c-

span.org/clip/white-house-event/president-trump-calls-fed-chair-powell-stupid/5165846 (video at

1:58–2:07). More recently, as he considered whom to appoint as the Fed’s next Chair, Trump

vowed, “Anybody that disagrees with me will never be the Fed Chairman!” Donald J. Trump

(@realDonaldTrump), Truth Soc. (Dec. 23, 2025, at 12:55 PM), https://perma.cc/6NCY-DBHA.

Until such replacement arrives, the Fed is chaired by Jerome Powell. Even as the

President has publicly badgered the Fed to lower rates, Powell and the FOMC have steered an

independent course based on their reading of the economic data. Compare, e.g., Donald J.

Trump (@realDonaldTrump), Truth Soc. (Jan. 13, 2026), https://perma.cc/6LSK-2BPZ (“Jerome

‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just

continue to be, ‘TOO LATE!’”), with Press Release, Bd. of Governors of the Fed. Rsrv. Sys.,

Federal Reserve Issues FOMC Statement (Jan. 28, 2026), https://perma.cc/47U5-GG5G (keeping

rates steady because “economic activity has been expanding at a solid pace,” “[j]ob gains have

remained low,” “the unemployment rate has shown some signs of stabilization,” and “[i]nflation

4 remains somewhat elevated”). During Powell’s tenure, that has usually meant raising rates.

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