According to informed sources, Federal Housing Finance Agency (FHFA) Director Bill Pulte was the primary force behind the Trump administration's decision to issue a subpoena to the Federal Reserve. This move increases pressure on the Fed as Trump prepares to select a new chair.

Some sources indicated that certain allies of Trump are concerned about this action, fearing that legal proceedings against Fed Chair Jerome Powell could disrupt the bond market. They also worry it might hinder Powell from leaving the Fed after his term as chair expires in May. Powell can remain on the Fed's Board of Governors until 2028, but he has not yet indicated whether he will follow convention and depart. The sources requested anonymity as they were discussing private government conversations.

The FHFA typically operates with a low-key and steady approach, but the current director has often been outspoken within this administration, actively promoting controversial housing policies and investigating Trump's political opponents for alleged mortgage fraud. Pulte has already submitted a criminal referral to the Justice Department regarding Fed Governor Lisa Cook, whose case the Supreme Court will hear later this month.

A senior administration official stated that it was the Justice Department, not Pulte, that pushed for the subpoena to be issued to the Fed. Sources said the investigation is being handled by the US Attorney's Office for the District of Columbia.

According to some sources, District of Columbia prosecutor Jeanine Pirro has approved the investigation into Powell.

An anonymous source stated that Attorney General Pam Bondi has directed the prosecutor's office to investigate potential cases of misuse of taxpayer funds.

The FHFA and Pulte have not yet responded to the matter.

Some sources claimed that several of Trump's senior aides were unaware of the situation until Powell received the subpoena on Friday evening.