Stock Markets January 28, 2026

Federal Reserve Has Not Turned Over Documents Linked to Powell Probe, Sources Say

Grand jury subpoenas tied to the criminal investigation of Chair Jerome Powell remain unanswered as inquiry continues

By Avery Klein
Federal Reserve Has Not Turned Over Documents Linked to Powell Probe, Sources Say

The Federal Reserve has not yet produced materials sought through grand jury subpoenas in a criminal probe of Chair Jerome Powell, according to a person familiar with the matter. Powell disclosed earlier this month that he is the subject of a criminal investigation and has characterized the inquiry as politically motivated. The timeline for the Fed to comply with the subpoenas is unclear, and the investigation by U.S. Attorney Jeanine Pirro continues while the central bank holds interest rates steady.

Key Points

  • The Federal Reserve has not yet complied with grand jury subpoenas related to a criminal investigation of Chair Jerome Powell.
  • Powell disclosed on January 11 that he is under criminal investigation and described the probe as politically motivated, referencing President Donald Trump’s repeated calls for rate cuts.
  • The deadline for the Fed to submit documents in response to the subpoenas has not been made clear, while U.S. Attorney Jeanine Pirro continues the inquiry and the Fed maintains current interest rates.

The Federal Reserve has not complied with grand jury subpoenas issued in connection with a criminal investigation into Chair Jerome Powell, a person familiar with the matter told reporters. The source declined to provide further detail on the scope of the material requested or the specific subpoenas.

Powell publicly revealed on January 11 that he was the subject of a criminal investigation and said at that time he regarded the probe as politically motivated. He specifically linked those political concerns to repeated public calls from U.S. President Donald Trump for the central bank to make sharp cuts to interest rates.

It is not clear when the Fed must deliver the documents sought under the subpoenas. The party familiar with the matter did not provide a deadline for compliance, leaving the timing of any potential production unresolved.

The inquiry is being handled by U.S. Attorney for the District of Columbia Jeanine Pirro. The investigation remains active even as the Federal Reserve announced a decision to retain its current policy interest rate.

When asked by reporters whether the Fed had responded to the subpoenas, Powell declined to offer an update, saying, "I have nothing for you on that today." No further comment was provided by Fed officials in relation to the subpoenas or any document production timetable.

This developing matter involves ongoing legal proceedings and a sitting central bank leader. At present, details about the specific evidence sought, the grand jury's questions, and any potential next steps remain limited to the information already disclosed by Powell and the single source cited regarding the Fed's noncompliance.


Contextual note - The items reported here are based on a person familiar with the matter and public comments made by Chair Powell. No additional documents or deadlines have been confirmed publicly beyond what is described above.

Risks

  • Unclear timetable for document production - Markets sensitive to central bank governance and transparency, including banking and fixed income sectors, face uncertainty until compliance timing is resolved.
  • Ongoing investigation with limited public details - The lack of additional information introduces near-term ambiguity for financial market participants and policy observers tracking central bank leadership and decision-making.
  • Perceptions of politicization - Public statements characterizing the probe as politically motivated may influence confidence in institutional impartiality, affecting sectors attuned to policy stability such as financial services and broader markets.

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