US District Judge James Boasberg denied a government motion to reconsider his March 11 order that quashed prosecution subpoenas issued to the Federal Reserve’s Board of Governors.

Judge Boasberg found that the Department of Justice (DOJ)’s motion did not contain any new evidence or identify any material error in his previous order. He cited the DOJ’s “total lack of a good-faith basis to suspect a crime,” stating that “[t]he Government’s fundamental problem is that it has presented no evidence whatsoever of fraud.”

The subpoenas were part of a criminal investigation into Federal Reserve Chair Jerome Powell by the US Attorney’s Office for the District of Columbia. The investigation centers on a $2.5 billion renovation project for two buildings occupied by the Federal Reserve that have not been renovated since they were built in the 1930s. While work on the buildings started in 2022 with a predicted cost of $1.9 billion, the cost has since increased due to renovations that include the removal of asbestos and lead, the replacement of “antiquated” electrical and plumbing systems, and the improvement of security and accessibility.

The investigation began after Powell testified about the renovations before the Senate Banking Committee in June. Judge Boasberg, however, quashed the subpoenas last month on the grounds that they had an improper purpose. He wrote, “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 and make way for a Fed Chair who will.” The judge said that the president or administration officials had made over 100 public statements criticizing Powell and pressuring him to lower interest rates.

When Powell announced the subpoenas in January, he said they were part of a pressure campaign to force him to lower interest rates, as demanded by President Donald Trump. He alleged that the campaign included efforts to fire Lisa Cook, one of the Federal Reserve’s governors.  The Supreme Court is expected to decide by this summer if the president has that authority.