Judge throws out subpoenas in Federal Reserve criminal probe

March 13, 2026 - 22:37

In a significant legal victory for the nation's central bank, a federal judge on Friday rejected two subpoenas issued by the Justice Department to the Federal Reserve. The decision represents a major setback for prosecutors in an ongoing criminal investigation and bolsters the position of Fed Chair Jerome Powell.

The now-invalidated subpoenas had sought a range of documents and communications from the Fed. While the specific nature of the underlying probe remains under seal, the Justice Department's efforts to compel information from the central bank had raised substantial concerns about the separation of powers and the Fed's operational independence.

Legal experts view the ruling as a robust defense of the Federal Reserve's institutional autonomy from executive branch overreach. The judge's decision to throw out the subpoenas underscores the legal protections surrounding the central bank's sensitive deliberations and internal communications. This outcome allows the Fed to continue its critical economic work without the immediate shadow of this particular investigative demand, though the broader investigation by the Justice Department may continue through other avenues. The ruling is expected to be studied closely as a precedent for future tensions between law enforcement and independent regulatory agencies.