Episode summary
Instant Reaction: Judge Rejects Subpoenas of Fed in Powell Case, DOJ to Appeal | Bloomberg...
Bloomberg Intelligence
· · 23 min · Hosts: Paul Sweeney, Carol Massar, Tim Stenovec · Guests: June Grasso, Michael McKee, Tim O'Brien
Summary
A federal judge rejected subpoenas aimed at the Federal Reserve in the investigation involving Jerome Powell, saying the government had offered no evidence to justify them and that the effort reflected retaliation over policy differences. The US attorney for Washington, DC, Janine Pirro, said the ruling was wrong and that the Justice Department will appeal, keeping the case alive and potentially slowing Kevin Warsh’s path to becoming Powell’s successor.
The analysts argued the case is legally weak because it is built around alleged misstatements and possible perjury, not a clear underlying crime. They said the Fed had already taken the position that there was no criminal conduct, and that the judge’s ruling gives the central bank a first-line victory while any appeal could take months. One analyst also said the office in DC has had trouble persuading grand juries in other cases.
On the market and policy side, the discussion suggested Powell is likely to remain in place for now. The analysts said the Fed’s independence still looks intact to investors, though the longer the dispute drags on, the more it could complicate the confirmation process and keep uncertainty around the Fed leadership transition.
Key takeaways
- The judge found the subpoenas unreasonable and said the government had shown no evidence of a crime tied to Powell or the Fed.
- The Justice Department will appeal, so the fight over the subpoenas is likely to continue for months.
- The analysts said the case looks like a weak perjury-style theory rather than a strong criminal case.
- One analyst said Powell could remain as Fed chair until a successor is confirmed, limiting any immediate leadership change.
- The market view, according to the analysts, is that Fed independence still looks broadly intact despite the political pressure.
Notable quotes
“this gives him blanket immunity”
“it's going to continue for months because that's the way the legal system works”
“the markets believe in the Fed and I don't think there it's going to take a lot to change that”
How the episode opens
Every small business owner has that one moment that could have broken them, but remarkably it didn't. Hi, I'm Ben Walter, CEO of Chase for Business. And on season 3 of The Unshakables, my co-host, Kathleen Griffith, and I are bringing you more incredible stories of overcoming the impossible.
We're really proud to share that The Unshakables is nominated for best branded podcast at the 2026 iHeart podcast Awards. Listen to the unshakables wherever you get your podcasts and learn more at chase.com/mpodcast. JP Morgan Chase Bank and a member FDIC copyright 2026 JP Morgan Chasing Company.
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Learn more at adobe.com/do that acrobat. — Bloomberg Audio Studios, podcasts, radio, news. — This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. US Attorney for Washington DC Janine Piro vowed to continue her investigation of Federal Reserve Chair Jay Powell after a judge earlier rejected subpoenas issued to the central bank threatening to delay the confirmation of Kevin Walsh as Powell's successor.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed subpoenas
- powell case
- doj appeal
- kevin warsh nomination
- fed headquarters renovations
Companies and tickers mentioned
- Bloomberg
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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