The Federal Reserve has been served with subpoenas from the U.S. Department of Justice demanding access to internal policy documents and communications related to recent monetary decisions. Chair Jerome Powell reaffirmed the central bank’s commitment to transparency and legal compliance, asserting that all actions remain within statutory authority.
- DOJ served subpoenas requesting records from Jan 2023 to Jun 2025 FOMC sessions
- Documents sought include internal forecasts, meeting minutes, and senior official correspondence
- Chair Jerome Powell affirmed full cooperation but stressed Fed independence
- VIX rose 6.2%, 10-year Treasury yield reached 4.87% post-announcement
- Market now expects delayed rate cuts—shift from mid-2026 to late 2026
- Major banks and corporate treasuries adjusting investment and liquidity strategies
The Federal Reserve is under formal legal scrutiny after receiving subpoenas from the U.S. Department of Justice requesting records tied to interest rate decisions made between January 2023 and June 2025. The documents sought include minutes from FOMC meetings, internal staff analyses, and correspondence among senior officials during key policy shifts, particularly those surrounding the 2024 rate hikes and the pause in tightening through Q2 2025. These requests are part of a broader investigation into potential regulatory overreach and the influence of non-economic factors on monetary policy. The subpoena process marks a significant escalation in the government’s oversight of the Fed’s operations. According to disclosures, the DOJ is examining whether decision-making processes adhered strictly to the Federal Reserve Act and whether external pressures influenced rate-setting. The scope of the inquiry includes data on inflation forecasts used in policy deliberations, as well as internal assessments of employment trends during periods of economic volatility. Chair Jerome Powell has publicly committed to full cooperation, stating that the Fed will respond to all lawful requests while protecting the integrity of its deliberative processes. However, he emphasized that the central bank remains independent in its policymaking functions. Market participants have reacted cautiously, with the CBOE Volatility Index (VIX) rising 6.2% and Treasury yields moving higher across the curve—particularly the 10-year note, which climbed to 4.87% following the announcement. Financial institutions, including JPMorgan Chase, Goldman Sachs, and Bank of America, are closely monitoring the situation, as uncertainty around future monetary policy could impact lending strategies and asset valuations. Corporate treasurers and fixed-income investors are revising expectations for rate cuts, now anticipating a delay until late 2026 instead of mid-2026 as previously projected.