Federal Reserve seeking to quash subpoenas in DOJ investigation, source says
CBSN
The Federal Reserve has been mounting a closed-door effort to block the Justice Department's subpoenas for chairman Jerome Powell, CBS News has learned.
The Federal Reserve has been mounting a closed-door effort to block the Justice Department's subpoenas for chairman Jerome Powell, CBS News has learned.
In January, Powell revealed that the Federal Reserve had received grand jury subpoenas from the Justice Department as part of an ongoing criminal investigation into him.
The subpoenas threatened a criminal indictment related to Powell's testimony before the Senate Banking Committee in June 2025, according to Powell. The chairman — who has drawn President Trump's ire for declining to rapidly slash interest rates — said the probe centered on his comments about a years-long renovation project at the Federal Reserve's office buildings.
The probe has not resulted in any criminal charges.
In sealed court proceedings, the Federal Reserve is challenging the legality of the subpoenas and asking a federal judge to quash them, according to a source familiar with the efforts. It's unclear specifically what the Federal Reserve's legal arguments are, and the challenge is taking place behind closed doors because of secrecy rules surrounding grand jury proceedings.
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