Trump Administration-Linked Firm Sues Fed Over Closed-Door Meetings
Today, Azoria Capital, a money manager, has filed a lawsuit against Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit accuses the Fed of violating a 1976 federal law by conducting its monetary policy meetings in private.
In its legal action, Azoria Capital is seeking a temporary restraining order to compel the Federal Open Market Committee (FOMC) to hold its meetings in public, starting from the upcoming sessions next Tuesday and Wednesday where decisions on interest rates will be made.
Azoria Capital’s Connection to Trump’s Administration
Azoria Capital, led by CEO James Fishback, has ties to the Trump administration, with Fishback previously serving as an assistant for the Department of Government Efficiency (DOGE).
The fund manager argues that the FOMC’s lack of transparency undermines public accountability mandated by Congress. Azoria contends that without real-time access to FOMC discussions, it is unable to fully assess and protect against Federal Reserve policy changes that could lead to market volatility.
Furthermore, Azoria expresses concerns that the FOMC, under Chair Jerome Powell, is maintaining high interest rates to sabotage President Trump’s economic agenda, to the detriment of the American economy and its citizens.
The firm alleges that the FOMC’s current policy stance appears politically motivated, echoing President Trump’s criticisms of Powell’s leadership. Trump has repeatedly called for lower interest rates and accused Powell of being more rigid during his administration compared to his predecessor’s term.
Despite Trump’s pressure on the Fed to lower rates, the FOMC has maintained a cautious approach, citing the need to assess the impact of trade policies on inflation. The ongoing tensions between Trump and Powell have raised concerns about the independence of the central bank.
Amidst speculation about a potential rate cut by the end of the year, investors remain uncertain about the Fed’s upcoming decisions, with conflicting views among Fed governors and market analysts.
Trump’s Visit to the Federal Reserve Headquarters
Recently, President Trump hinted that Powell may leave his position earlier than expected. This statement comes amidst growing criticism of the Fed’s policies and decisions by the Trump administration.
Today, President Trump and his allies are scheduled to visit the Federal Reserve headquarters to inspect ongoing renovations, following public outcry over the project’s cost. Trump’s visit to the iconic building symbolizes the administration’s scrutiny of the Fed’s operations and decisions.
Accompanied by key officials and advisors, including White House deputy chief of staff James Blair, budget director Russell Vought, and Federal Housing Finance Agency Director Bill Pulte, Trump’s visit to the Fed marks a rare occasion for a sitting president to directly engage with the central bank.