The Federal Reserve is contesting two subpoenas from the U.S. Department of Justice in a closed-door legal proceeding, according to reports. These subpoenas are part of a criminal investigation led by U.S. Attorney Jeanine Pirro into Federal Reserve Chairman Jerome Powell. The investigation focuses on whether Powell made false statements during his congressional testimony last summer concerning the Fed's building renovation project. Chairman Powell has previously addressed the investigation, describing it as a "pretext" for former President Trump to exert pressure for interest rate cuts and to challenge the Fed's independence. The legal battle underscores ongoing tensions between the Federal Reserve and the Justice Department.