00:00It's Benzinga bringing Wall Street to Main Street.
00:02The Federal Reserve is challenging two subpoenas issued by the Justice Department
00:06as part of U.S. Attorney Jeanine Pirro's criminal investigation into Chair Jerome Powell,
00:11according to the Wall Street Journal.
00:13Pirro opened the probe in November to examine whether Powell gave false testimony to Congress
00:17about cost overruns tied to a $2.5 billion renovation project.
00:22The Fed is asking a judge in sealed proceedings to quash the subpoenas,
00:26which could reduce or eliminate its obligation to respond, though its legal arguments are not public.
00:32Subpoena recipients in high-profile investigations often challenge demands as overly broad or seeking privileged information.
00:39Powell said in a January 11th video statement that the investigation is a pretext to pressure the central bank on
00:45interest rates.
00:46The subpoenas were sent on January 9th and sought responses by late January.
00:51The probe has delayed Kevin Warsh's confirmation as Powell's successor.
00:55For all things money, visit Benzinga.com.
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