Economy March 13, 2026

Fed Turns to Former Biden Special Counsel in Fight Over DOJ Subpoenas

Board of Governors enlists Robert Hur as judge blocks Justice Department subpoenas tied to probe of Jerome Powell

By Avery Klein
Fed Turns to Former Biden Special Counsel in Fight Over DOJ Subpoenas

The Federal Reserve Board engaged Robert Hur, a former special counsel who examined President Joe Biden's handling of classified documents, in its dispute with the Justice Department over subpoenas seeking records connected to Fed Chair Jerome Powell. A federal judge in Washington blocked the subpoenas, citing insufficient evidence of criminality and suggesting political motives tied to pressure on Powell over interest-rate decisions.

Key Points

  • The Federal Reserve Board engaged Robert Hur, a former special counsel, to help contest DOJ subpoenas seeking records linked to Chair Jerome Powell - sectors affected include central banking and legal services.
  • A federal judge in Washington blocked the Justice Department subpoenas, finding the government presented no evidence of criminal conduct by Powell other than displeasing the President and noting indications the probe sought to pressure Powell on interest-rate policy - this directly implicates federal governance and monetary policy institutions.
  • The Justice Department, led by Washington, D.C., U.S. Attorney Jeanine Pirro, said it will appeal the decision, maintaining the dispute will continue through the courts - legal and governmental sectors remain central to the outcome.

The Federal Reserve Board has retained Robert Hur, a former prosecutor who served as special counsel during President Joe Biden's administration, in its legal battle with the U.S. Justice Department over subpoenas seeking records related to Federal Reserve Chair Jerome Powell, court filings made public on Friday show.

The subpoenas were issued as part of a criminal inquiry into Powell's involvement with a project to renovate historic buildings at the Federal Reserve's Washington headquarters. The Justice Department sought documents about the renovations as well as materials connected to Powell's July 2025 testimony before the Senate Banking Committee.

In filings unsealed on Friday, Chief U.S. District Judge James Boasberg granted the Fed's motion to quash the subpoenas. The judge wrote that the government "offered no evidence whatsoever that Powell committed any crime other than displeasing the President," and said there is a "mountain of evidence" suggesting the investigation aimed to pressure Powell to lower interest rates or to prompt his resignation.

The court papers indicate the Federal Reserve Board turned to Hur for help in the dispute. Hur is a conservative attorney who was appointed special counsel during Biden's presidency to examine classified documents found in Biden's home and office. He chose not to bring charges in that matter but attracted criticism from Democrats for describing Biden as an "elderly man with a poor memory."

Hur was named Maryland's top federal prosecutor during former President Donald Trump's first administration. He is now a partner at the law firm King & Spalding. Jeffrey Bucholtz, another partner at King & Spalding who has represented the Federal Reserve Board in prior litigation, is also listed as part of the legal team in the subpoena case.

Hur and Bucholtz did not immediately respond to requests for comment. A spokesperson for the Federal Reserve's Board of Governors declined to comment on the filings.

The Justice Department's investigation is being led by Washington, D.C., U.S. Attorney Jeanine Pirro, whose office said it would appeal the court's decision. The filings show the Fed's Board of Governors moved on Feb. 24 to quash the subpoenas, arguing that their purpose was to "aid the president's quest to seize for himself a power specifically denied to him by federal law."

Powell, who is represented by attorneys from the law firm Williams & Connolly, disclosed in January that the Justice Department was probing the renovations project. Powell has characterized the investigation as a pretext. Separately, Republican President Donald Trump has publicly pressured the Federal Reserve to cut interest rates and has criticized Powell for not doing so more quickly.

The filings also note that Hur and King & Spalding represent Harvard University in separate litigation against the Trump administration concerning the school's federal funding and its enrollment of foreign students.

The court's ruling to block the subpoenas leaves unresolved whether the Justice Department will succeed on appeal. Jeanine Pirro's office has indicated it will challenge the decision, setting up further litigation in a contentious dispute that touches on the independence of the central bank, the scope of criminal investigations involving senior public officials, and the interplay between political pressure and law enforcement actions.


Contextual note: The unsealed filings and court decision detail the legal positions taken by both the Federal Reserve Board and the Justice Department, describe the personnel involved, and include language from Judge Boasberg questioning the basis for the subpoenas. The documentation also records the Fed's contention that the subpoenas were improperly aimed at advancing a president's political objectives.

Risks

  • The Justice Department has pledged to appeal the ruling, which creates uncertainty about whether the subpoenas could be reinstated - this risk primarily affects legal and federal governance sectors.
  • Judge Boasberg's finding that the government presented no evidence beyond Powell having displeased the President raises questions about prosecutorial motivations and could prolong litigation, sustaining uncertainty for the Federal Reserve's governance and its public standing.
  • The controversy involves political pressure tied to interest-rate decisions, which could affect perceptions of central bank independence and therefore influence market participants and financial institutions.

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