According to informed sources, the U.S. Federal Reserve is mounting a confidential legal challenge against two subpoenas, which form part of a criminal investigation into Fed Chair Jerome Powell led by federal prosecutor Jeannine Pirro. Pirro, a longtime ally of former President Trump, initiated the probe to examine whether Powell gave false testimony to Congress last summer regarding the renovation of the Federal Reserve building. In response, Powell issued an unprecedented public statement on January 11, describing the investigation as a pretext for Trump's continued pressure on the Fed to cut interest rates and undermine the central bank's independence. The Fed has asked a judge, through non-public proceedings, to quash the subpoenas in an effort to limit or avoid its obligation to cooperate with the investigation. The specific legal grounds for the challenge are not yet known. It is not uncommon in high-profile investigations for subpoenaed parties to resist prosecutors' demands by arguing that the scope is overly broad or seeks legally privileged information. Due to grand jury secrecy rules, the legal dispute is being conducted out of public view.