A money manager sued the Federal Reserve, alleging closed-door monetary policy meetings violate a 1976 law. Azoria Capital seeks a restraining order to open FOMC deliberations to the public during upcoming interest rate decisions. The lawsuit comes amid pressure on the Fed by President Trump, who criticized a costly renovation project.

Azoria Capital, led by CEO James Fishback close to the Trump administration, filed the lawsuit against Powell and the FOMC. Fishback, who announced an anti-DEI ETF at Mar-a-Lago, argues that closed FOMC meetings undermine public accountability and may be politically motivated to harm Trump’s agenda.

The lawsuit claims that the Fed’s secretive meetings violate the Government in the Sunshine Act of 1976, emphasizing the need for transparency. The law requires open federal agency meetings, with exemptions for financial speculation. Azoria argues that the FOMC has unlawfully held closed meetings since 1977, violating the mandate for transparency.

The Fed’s policy stance raises questions about political influence on monetary policy, according to Azoria’s suit. While investors don’t expect rate changes at the upcoming meeting, two Fed governors support a cut. Trump has criticized Powell for not lowering rates, arguing for a three-point reduction.

The lawsuit against the Fed highlights concerns about secretive monetary policy meetings and calls for transparency. The lawsuit’s plaintiff, Azoria Capital, alleges that the Fed’s closed-door practices violate a 1976 law requiring federal agencies to hold open meetings to the public, barring certain exemptions for financial speculation.

Read more at Yahoo Finance: Fed gets fresh legal headache with lawsuit seeking to make FOMC rate meetings public