WSJ: Fed Mounts Legal Battle Over U.S. Justice Department Subpoena

BlockBeats News, February 27th, according to The Wall Street Journal, the Federal Reserve is secretly launching a legal challenge in response to two subpoenas issued by U.S. prosecutor Jeanine Pirro in her criminal investigation of Powell.

Pirro, a long-time ally of President Trump, initiated this investigation to review Powell's alleged false statements to Congress last summer regarding the Fed's renovation project. This action prompted Powell to respond publicly in an unprecedented manner, stating in a video address on January 11th that the investigation was a pretext for Trump's ongoing pressure on the Fed to cut rates and undermine the central bank's independence.

In the secret proceeding, the Fed is seeking a judge to quash the subpoenas to reduce or eliminate its response obligations. The specific legal arguments have not been disclosed. In high-profile investigations, it is not uncommon for subpoena recipients to question the breadth of the prosecutor's requests or involvement of privileged information.

Due to the secrecy rules applicable to criminal investigations before grand juries, this legal battle is quietly unfolding, shielded from public view.