Federal Reserve Chair's Victory in Subpoena Block: A Setback for Trump's Central Bank Influence

A U.S. judge has upheld a decision to block subpoenas linked to a criminal investigation into Federal Reserve Chair Jerome Powell. This move delays efforts by President Trump to install a more compliant central bank leader. The Justice Department plans to appeal the ruling, complicating Kevin Warsh's confirmation as Fed chair.

A U.S. judge reaffirmed his decision to block criminal investigation subpoenas aimed at Federal Reserve Chair Jerome Powell, hindering President Trump's efforts to replace him with a more agreeable central bank head.

Judge James Boasberg dismissed the Justice Department's request to reconsider, asserting the subpoenas were improperly used to pressure Powell at the Fed's Board of Governors. The decision underscores a contentious clash between Trump's administration and the Federal Reserve.

The setback for Trump allies also affects Kevin Warsh's confirmation to succeed Powell. The appeal process will likely extend the timeline, delaying any resolution. Legal challenges continue as conflicting arguments on evidence and judicial standards unfold.

(With inputs from agencies.)