WASHINGTON, D.C. — U.S. District Judge James Boasberg quashed Justice Department subpoenas issued to the Federal Reserve in January, ruling that U.S. Attorney Jeanine Pirro had presented no evidence to justify her demands for information from the central bank. Pirro issued the subpoenas to compel the Federal Reserve to produce information about cost overruns at renovations of its offices.

"On the other side of the scale, the government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual." Boasberg wrote. "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 who will."

Pirro issued subpoenas after her inquiries to the Federal Reserve about the office renovation and about Powell's testimony before Congress were ignored. Pirro said she would appeal the ruling and said the decision was wrong and had neutered her ability to investigate crime. "This process has been arbitrarily undermined by an activist judge." Pirro said. "Jerome Powell today is now bathed in immunity."

Federal Reserve Chair Jerome Powell released a video on January 11 accusing the administration of launching the legal probe to pressure the bank into cutting interest rates. Powell called the Justice Department probe a pretext to pressure the central bank to lower interest rates. The Federal Reserve declined to comment on the ruling.

President Donald Trump appointed Jeanine Pirro as U.S. Attorney for the District of Columbia last year. A congressional hearing was held by Republican senators on the Federal Reserve's building renovation cost overruns, and they said they did not think further investigation was warranted.

Prosecutors do not typically have to present evidence to the court at the stage of issuing subpoenas. The case sparked concerns about political pressure on the central bank and complicated White House efforts to install a new Federal Reserve chair. Powell's term as Federal Reserve Chair ends in May.