Trump administration asks judge to revisit ruling blocking subpoenas to Fed’s Powell

WASHINGTON, March 16 (Reuters) – President Donald Trump’s administration has asked a judge to reconsider his ruling that has effectively blocked a criminal investigation into U.S. Federal Reserve Chair ​Jerome Powell, according to court documents made public on ‌Monday.

Washington-based U.S. District Judge James Boasberg in a ruling unsealed on Friday blocked subpoenas issued by federal prosecutors in January seeking information about cost overruns in renovations at the Fed’s headquarters and Powell’s testimony to Congress ‌last ​year about the project.

Boasberg concluded that prosecutors ⁠had improperly issued the ⁠subpoenas, saying a “mountain of evidence” suggests the investigation – as Powell has argued – was intended to pressure the Fed chair to rapidly lower interest rates or resign as chair.

The Justice Department ​in a new filing urged Boasberg to revisit his decision. Prosecutors working with Jeanine Pirro, the Trump-appointed U.S. Attorney in ⁠Washington who is leading the investigation, ⁠argued in the filing that the judge “applied an incorrect ​legal standard” and “erred with respect to certain significant facts.”

The motion was ​filed under seal on Thursday, but was made public ‌on Monday following a request from Pirro’s office. Pirro said on Friday she would file both a motion for reconsideration and appeal to a higher court.

The investigation carries implications both for the ⁠central bank’s independence and for Trump’s attempt to install a more compliant Fed chair when Powell’s leadership term expires in mid-May. Republican Senator ⁠Thom Tillis of ‌North Carolina has said he will not ⁠vote to confirm any Fed nominee while the ​investigation remains ‌ongoing.

Powell has defended the Fed’s spending on ​the renovations ⁠as necessary, and hosted lawmakers and Trump on a visit to the Fed to tour the ongoing project.

“The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” the judge wrote.

(Reporting by Andrew Goudsward; editing by Andy Sullivan ​and Will Dunham)