Episode summary
Instant Reaction: Judge Rejects Subpoenas of Fed in Powell Case, DOJ to Appeal | Bloomberg...
Bloomberg Surveillance
· · 20 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr, 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 of Jerome Powell, and Jeanine Piro said the Justice Department will appeal. The panel said the government had not shown evidence to justify the subpoenas tied to renovations at Fed headquarters and Powell’s comments about the project, and the ruling was described as a setback for an effort that could have affected the timing of Kevin Worsh’s confirmation as Powell’s successor.
Bloomberg legal analyst June Grasso said the opinion framed the probe as retaliatory and called the subpoenas unreasonable and oppressive. The discussion focused on how difficult it would be to turn Powell’s Senate testimony about renovation costs into a criminal case, especially without proof that he lied. The panel also noted that the DC office has had trouble getting grand juries to indict in other matters.
The guests argued that Powell is likely to remain in place while the appeal works through the courts. Michael McKee said Powell can stay on as governor until January 2028 and could continue as Fed chair until a successor is confirmed. Tim O’Brien said the episode reflected weak planning and poor communication inside the Trump team more than a coherent strategy, even as the administration keeps pressing the case.
Key takeaways
- June Grasso said Judge Boasberg saw no evidence of crime and treated the subpoenas as an improper act of retribution.
- Michael McKee said Powell can remain a Fed governor until January 2028 and could stay as chair until a successor is confirmed.
- Tim O’Brien argued the episode showed more chaos than strategy inside the Trump administration.
- The panel said a criminal case based on Powell’s cost testimony would be hard to prove without a clear lie.
- The Justice Department’s appeal could stretch the fight for months and delay Kevin Worsh’s confirmation.
Notable quotes
“there's a mountain of evidence that this is about retribution against Powell by Trump”
“this gives him blanket immunity”
“the Fed itself is more important”
“planning matters. It it matters when you plan a party. It matters when you plan a home renovation”
How the episode opens
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 Worsh as Powell's successor. She spoke from her office in DC. Jerome Powell today is now bathed in immunity preventing my office from investigating the Federal Reserve.
This is wrong and it is without legal authority.
That's US attorney for Washington DC, Janine Piro. We're joined by June Graasso, Bloomberg legal analyst and host of Bloomberg Law. Week nights at 6 and 10 p.m.
on Bloomberg radio. Michael McKe is with us too. He's Bloomberg TV and radio international economics and policy correspondent.
June, you brought a print out. This is the full opinion. What have you found?
Let me first read you, if I may, the first few lines. Jerome, too late. Powell has done it again.
It's too late. And actually, he's too angry, stupid, and too political to have the job of Fed chair. He's costing our country trillions of dollars.
It sounds like a true social post. — So, wait, the judge started with a page and a half of social posts by President Trump. — So, all legal rulings are like that, right? — These days, — I've never seen one like this because usually they didn't even give a preface. He just went right into it. And you know, the thing is that he said there's um there's no evidence that Powell committed any crimes. They've presented no evidence. On the other side, there's a mountain of evidence that this is about retribution against Powell by Trump.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed subpoenas
- jerome powell
- doj appeal
- kevin warsh confirmation
- federal reserve policy
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Bloomberg Surveillance, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
