Several Banks, Biz Groups Sue Disgraced Fed Chair Jerome Powell Accused of Purposefully Keeping Interest Rates High to Undermine President Trump’s Agenda.

Fed Chair Jerome Powell has just been sued, accused of purposefully keeping interest rates high to undermine President Trump’s agenda.

Bear in mind that interest rates for the EU’s main refinancing operations and the top-level refinancing facility are 2.0 percent.

My investment firm (@InvestAzoria) just sued Jerome Powell in federal court for violating federal transparency law.

The Government in the Sunshine Act of 1976 requires that “every portion of every meeting of an agency shall be open to public observation.” The Federal Reserve is… pic.twitter.com/hRdkUQTKOo

— James Fishback (@j_fishback) July 24, 2025

Several major banks and business groups are currently suing the Federal Reserve over the Fed’s annual “stress tests” of financial institutions. The lawsuit, filed in US District Court in Ohio, alleges that the Fed’s stress test procedures violate proper administrative procedures, specifically citing a lack of transparency and public input. The plaintiffs argue that the Fed’s opaque process for determining capital requirements based on hypothetical economic scenarios is not adequately explained or subject to public comment as required by law. 

Here’s a more detailed breakdown:

The Lawsuit:

The Bank Policy Institute, the US Chamber of Commerce, the American Bankers Association, and others are challenging the Fed’s stress testing practices. 

• Key Issue: Transparency and Public Input:

  The core of the lawsuit is the argument that the Fed’s stress tests lack transparency and adequate public input. The Fed does not publicly disclose the models and scenarios used in the tests, nor does it solicit public comment on these before finalizing them. 

• Impact of the Lawsuit:

  The lawsuit aims to ensure that the stress test process is subject to public input as required by federal law. The plaintiffs argue that the current opaque and volatile stress test results negatively impact banks’ ability to plan and manage capital, potentially leading to higher borrowing costs for consumers and businesses. 

• Fed’s Response:

  The Federal Reserve has acknowledged the concerns and announced plans to propose changes to increase transparency, including disclosing models and scenarios and allowing public comment. However, the plaintiffs are proceeding with the lawsuit to ensure their legal rights are protected and that the proposed changes are implemented effectively. 

• Potential Changes:

  The Federal Reserve Board has indicated that it intends to propose changes including disclosing and seeking public comment on “all of the models that determine the hypothetical losses and revenue of banks under stress” and allowing public comment on the hypothetical scenarios used for the test before they are finalized. They are also considering averaging test results over two years to reduce year-over-year changes in capital requirements. 

• Statute of Limitations:

  The plaintiffs are also motivated by a statute of limitations that is expiring in February 2025, which would prevent them from challenging certain aspects of the stress test framework.