Federal Reserve Investigation Hits Roadblock as Judge Rules Lack of Evidence Exists

A federal judge has denied a request from House Oversight Committee Chairman Jim Jordan for evidence related to potential wrongdoing at the Federal Reserve, blocking a probe into the central bank’s activities. The judge ruled that there was “no evidence” to justify a formal investigation into the Fed, following subpoenas issued by Rep. Jordan and other lawmakers. The subpoenas were aimed at gathering information on various transactions and lending practices within the Fed, which has drawn scrutiny from some conservatives who claim it favors certain institutions over others. The committee’s request for documents was related to reports of “systemic risk” in financial markets and allegations that the Fed provided emergency loans to struggling Wall Street firms during the 2008 financial crisis. The subpoenaed documents include records of the Fed’s dealings with Goldman Sachs, JPMorgan Chase, and other major banks. Lawmakers have been trying to get their hands on these records for months, but the Fed has resisted, citing concerns over confidentiality agreements and national security interests. In a surprising move, Rep. Pirro announced in December that she would appeal the judge’s decision, citing an “obstructionist” response from the Fed. The ruling is likely to be seen as a win for the central bank and a setback for lawmakers who sought more oversight of its activities.