Judge Blocks Subpoenas Against Fed Chair Powell Amid Controversy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Source: CNBC
- Judge Rules Subpoenas Invalid: U.S. District Judge James Boasberg ruled that subpoenas issued against Federal Reserve Chair Jerome Powell were improperly motivated by pressure from President Trump, indicating a lack of legitimate purpose that could affect Powell's stability in office.
- No Evidence of Wrongdoing: Boasberg highlighted that the prosecution failed to provide any evidence of criminal activity by Powell, other than displeasing the President, which may weaken attacks on the Fed's independence and further solidify Powell's position.
- DOJ Plans to Appeal: Prosecutor Jeanine Pirro announced plans to appeal the “outrageous” ruling, asserting it lacks legal authority, which could impact the Fed's policy direction amid increasing economic uncertainty.
- Cautious Market Response: Rising energy costs due to the Iran war have delayed market expectations for further rate cuts, and Powell's continued tenure may influence future monetary policy decisions, especially as market hopes for rate reductions diminish.
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Analyst Views on WFC
Wall Street analysts forecast WFC stock price to rise
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 80.570
Low
74.00
Averages
98.66
High
113.00
Current: 80.570
Low
74.00
Averages
98.66
High
113.00
About WFC
Wells Fargo & Company is a financial services company. The Company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions. The Company operates through four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The Company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending. In addition, the Company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
See More
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- Market Rebound: The S&P 500 and Nasdaq Composite rose 3.4% and 4.4% respectively during the holiday-shortened trading week, breaking a five-week losing streak, reflecting optimism about a potential resolution to the Iran war.
- Oil Price Volatility: Despite an 11.4% surge in oil prices on Thursday, the stock market still rallied, indicating a new understanding of the inverse relationship between oil prices and stocks, which may signal increased investor confidence for the future.
- Strong Employment Data: The U.S. March jobs report revealed an addition of 178,000 jobs, significantly surpassing the Dow Jones estimate of 59,000, suggesting a healthy labor market that could alleviate concerns about stagflation driven by rising oil prices.
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See More
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- Oil Price Surge Impact: Following President Trump's address on the Iran war, which raised escalation concerns, U.S. crude benchmark WTI surged 9% to $109 a barrel, putting downward pressure on the stock market and negatively affecting investor sentiment.
- Bank of America Upgrades Vale: Bank of America upgraded Vale from hold to buy, suggesting that now is an attractive entry point for investors in the iron ore producer, despite Vale's stock dropping nearly 7% since the Iran conflict began, while iron ore prices have risen about 8%.
- Wix's Outlook Downgraded: UBS downgraded Wix from buy to hold, with analysts believing its 2026 outlook indicates a slowdown in core business growth from 12% last year to 8% this year, and despite efforts to integrate AI capabilities, the company remains vulnerable to disruption by AI.
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See More
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- Cash is King: R360's ultra-high net worth investors are currently holding up to 30% in cash and short-duration debt, reflecting a strategy to maintain liquidity amidst market volatility, emphasizing a long-term investment philosophy.
- Treasury Market Opportunities: With the 10-year Treasury yield rising to 4.3%, high net worth investors are showing strong interest in intermediate fixed income products, indicating an increasing demand for stable returns in the current interest rate environment.
- Tech Stock Buying Opportunities: Sameer Samana from Wells Fargo notes that the sharp pullback in equities has created opportunities for high net worth investors to buy tech stocks at more reasonable valuations, particularly in the software and hardware sectors, reflecting confidence in future growth potential.
- Energy and Commodity Investments: Charlie Garcia from R360 states that investors have shifted 40% of their new money into energy and commodities, particularly Canadian Natural Resources and major oil companies, signaling a long-term bullish outlook on the energy market despite potential short-term oil price fluctuations.
See More
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- Massive IPO Potential: The anticipated IPOs of companies like OpenAI and SpaceX, with SpaceX valued at $1.75 trillion and collaborating with banks like Goldman Sachs and Wells Fargo, highlight strong market demand for large transactions that could significantly boost banks' revenues.
- Interest Rate Policy Impact: The potential for a new Fed chair to implement more accommodative monetary policy could lead to lower borrowing costs; while this may compress banks' net interest income, it could also stimulate loan demand, supporting revenue growth for Goldman Sachs and Wells Fargo.
- Earnings Outlook Positive: Upcoming earnings reports from Goldman Sachs and Wells Fargo are highly anticipated, particularly with Goldman expected to see a 25% year-over-year revenue increase in its investment banking division, and Wells Fargo projecting net interest income of $50 billion, indicating robust growth potential.
See More
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- Nike Downgrade: Following another disappointing earnings report, Nike was downgraded to a hold-equivalent 2 rating; despite beating revenue and sales expectations, the weak guidance has forced Wall Street to lower future expectations, highlighting ongoing challenges for the company.
- Boeing Share Surge: Boeing shares rallied another 5% on Wednesday after analysts initiated coverage with a buy rating and a price target of $250, reflecting market optimism about future orders, with Jim Cramer expressing strong support for the stock's recovery.
- Rapid Fire Recap: Other stocks mentioned at the end of the video included AMD, American Express, Walt Disney, RH, and Constellation Brands, indicating a focus on a diversified investment portfolio, with Jim Cramer's charitable trust holding positions in both Nike and Boeing.
See More
