Trump Can't Subpoena Fed's Powell, Judge Rules—Says President Just Trying To ‘Harass' Fed Chair

A federal judge denied the Trump administration's subpoena for Federal Reserve Chair Jerome Powell, finding the criminal investigation was a pretext to punish him for not cutting interest rates as requested by President Trump. The ruling preserves Fed independence and reduces the immediate political risk of direct executive pressure on monetary policy. Expect a modest calming effect on rate-policy uncertainty and a lower tail risk for politicized moves that might have unnerved Treasury and rate-sensitive markets.

Analysis

A federal judge denied the Trump administration's subpoena for Federal Reserve Chair Jerome Powell, finding the criminal investigation was a pretext to punish him for not cutting interest rates as requested by President Trump. The ruling preserves Fed independence and reduces the immediate political risk of direct executive pressure on monetary policy. Expect a modest calming effect on rate-policy uncertainty and a lower tail risk for politicized moves that might have unnerved Treasury and rate-sensitive markets.