WSJ: The Federal Reserve is secretly fighting legal battles against subpoenas from the U.S. Department of Justice

BlockBeats News, February 27 — According to The Wall Street Journal, citing sources familiar with the matter, the Federal Reserve is secretly initiating legal challenges in response to two subpoenas issued by U.S. Prosecutor Jeanine Pirro in her criminal investigation targeting Powell.

Pirro is a long-time ally of President Trump. She launched this investigation to examine Powell’s false statements to Congress last summer regarding the Federal Reserve building renovation project. This move prompted Powell to respond publicly for the first time, stating in a video statement on January 11 that the investigation is a pretext for Trump’s ongoing pressure on the Fed to cut rates and weaken the central bank’s independence.

In secret proceedings, the Federal Reserve is requesting a judge to revoke the subpoenas to reduce or eliminate its obligation to respond. The specific legal arguments have not been disclosed. It is not uncommon in high-profile investigations for subpoena recipients to challenge claims as overly broad or involving information protected by legal privileges.

Due to confidentiality rules applicable to criminal investigations in grand jury proceedings, this legal battle is unfolding quietly and is not open to the public.