Fishback Accuses Fed of Money Laundering Seeks Public FOMC Livestream

Azoria Capital CEO James Fishback has accused Federal Reserve Chair Jerome Powell of facilitating “a money laundering operation in broad daylight,” escalating a legal battle that could force the Fed to livestream its upcoming Federal Open Market Committee (FOMC) meeting [1]. The lawsuit, filed in Washington, D.C., argues that the Fed’s closed-door meetings violate the Government in the Sunshine Act of 1976, which requires transparency for multi-member federal decision-making bodies. Fishback demands public access to the FOMC’s deliberations, claiming secrecy undermines accountability and public trust. U.S. District Judge Barbara M. G. Lynn (referred to as Barl Howard in the filing) has scheduled an emergency hearing for Monday, just one day before the FOMC’s two-day session. The outcome could compel the Fed to either delay the meeting or broadcast it live, potentially reshaping how monetary policy decisions are perceived and analyzed by markets [1].

Fishback’s legal challenge targets the Fed’s argument that the Sunshine Act does not apply to the FOMC, which it classifies as a “subdivision” of the central bank. He dismisses this as a “fake carve-out,” emphasizing that the Fed has acknowledged its broader operations are subject to the law. “If the most powerful part of the institution—the one that sets rates—is not covered, what is?” Fishback said, highlighting the contradiction in the Fed’s legal defense. He also rejects the Fed’s claim that public meetings would destabilize markets by fueling speculation, pointing to past examples like Powell’s 2022 statement denying a rate hike, which he claims “fueled speculation” despite closed-door operations. Fishback argues the Fed’s secrecy is a “loophole” rather than a legal exemption, noting that existing transparency measures—such as Powell’s public interviews and released meeting minutes—already influence market expectations [1].

The lawsuit seeks a Temporary Restraining Order to block the FOMC meeting unless it is livestreamed. Fishback contends that taxpayers, who fund the Fed’s operations, deserve visibility into how decisions impacting mortgages, credit cards, and broader financial stability are made. He criticized the Fed’s ongoing renovation of its D.C. headquarters as “unnecessary and taxpayer-funded,” further underscoring the disconnect between public spending and accountability. The case has drawn attention for its potential to redefine the Fed’s transparency practices. If Judge Lynn rules in Fishback’s favor, the Fed may face pressure to adopt real-time public access to policy deliberations, a shift Fishback argues would “completely change how the markets react.” Currently, investors rely on post-meeting press conferences to interpret Powell’s statements, but livestreaming would shift volatility to Tuesday, as debates, dissenting views, and perceived biases among committee members unfold in real time [1].

Fishback anticipates that the public airing of dissent—such as Governor Chris Waller’s expected objections—would expose internal disagreements typically hidden in official statements. He predicts markets are unprepared for such transparency, warning that “Wall Street’s still asleep” and lacks strategies to navigate real-time decision-making dynamics. The emergency hearing represents a pivotal test of the Fed’s institutional credibility, with Fishback framing the lawsuit as a defense of public trust. The outcome could set a precedent for future transparency debates, particularly as central banks face increasing scrutiny over their role in financial governance [1].

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[1] [title1: James Fishback Calls Powell a Money Launderer as His Fed Lawsuit Hears Emergency Court Review] [url1: https://www.cryptopolitan.com/james-fishback-powell-a-money-launderer/]