Federal Reserve Fights Back Against DOJ Subpoenas Targeting Jerome Powell

The Federal Reserve is mounting a closed door legal battle to block Justice Department subpoenas targeting chairman Jerome Powell. In January, Powell revealed the Fed had received grand jury subpoenas tied to a criminal investigation into his June 2025 Senate Banking Committee testimony, where he defended a years long renovation project at the Fed's office buildings. The Trump administration's Office of Management and Budget Chair Russell Vought had accused Powell of leading an "ostentatious" renovation that may be "violating the law" amid cost overruns. The Fed is challenging the subpoenas' legality in sealed court proceedings, asking a federal judge to quash them. No criminal charges have been filed. Powell, whose term ends in May, argues the probe is a pretext to pressure the Fed over its independent interest rate decisions, which have resisted Trump's demands for rapid cuts.