DOJ Admits "We Don't Know" What Crime Powell Committed — Judge Finds "Zero Evidence"
A DOJ prosecutor admitted in a sealed hearing they had no evidence of wrongdoing by Fed Chair Powell. The judge found "essentially zero evidence" of a crime and ruled the investigation's sole purpose was to pressure Powell to lower interest rates or resign.
A sealed transcript from a March 3, 2026 hearing revealed that when the judge asked DOJ prosecutor George Massucco-LaTaif "So what false statements did Powell make before Congress?", he replied: "Well, we don't know is my first answer." When pressed about evidence of fraud or criminal misconduct: "We do not know at this time."
His only justification was: "There are 1.2 billion reasons for us to look into it" — referring to the dollar amount of a Fed building renovation overrun, not to any actual evidence of a crime.
Chief Judge James Boasberg quashed both grand jury subpoenas in a scathing ruling:
"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."
"The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President."
"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."
The judge cited over 100 public statements from Trump attacking Powell and pressuring him to lower interest rates. Congressional committee members from both parties stated Powell committed no crime.
U.S. Attorney Jeanine Pirro called Boasberg an "activist judge" and vowed to appeal. Powell responded that the criminal threat was "a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President." The investigation may have backfired: Powell indicated he would not leave the Fed Board while under investigation, potentially extending his tenure.