Bloomberg Surveillance Instant Reaction: Judge Rejects Subpoenas of Fed in Powell Case, DOJ to Appeal
Mar 13, 2026
Tim O'Brien, political strategist and Bloomberg Opinion editor, Michael McKee, international economics and Fed policy analyst, and June Grasso, legal analyst from Bloomberg Law, unpack a judge's rejection of subpoenas to the Fed. They discuss the judge's reasoning, Rule 17 limits, impacts on Powell and a potential confirmation delay, and the political theater and market implications surrounding the ruling.
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Judge Calls Subpoenas Politically Motivated
- Judge James Boasberg found no evidence of crime and viewed the subpoenas as motivated by political retribution rather than legitimate investigation.
- The opinion cites President Trump's social posts and frames the probes as aiming to "rid" the administration of Jay Powell, undermining prosecutorial credibility.
Appeal And Reconsideration Are The Next Moves
- Janine Pirro intends to appeal and seek reconsideration despite the ruling, keeping the case alive.
- June Grasso notes appeals and gathering new evidence are the next realistic steps for the D.C. Attorney's Office.
Powell Can Stay Until Successor Confirmed
- Jerome Powell can remain a Fed governor until January 2028 and the FOMC can keep him as chair until a successor is confirmed.
- Michael McKee explains procedural rules that allow Powell to continue chair duties unless he resigns or the committee elects otherwise.