Trump associate challenges Judicial opposition to public revelation of Federal Reserve rate meeting details
The Federal Open Market Committee (FOMC) is set to meet on Tuesday and Wednesday to set interest rates, with the meetings scheduled to take place behind closed doors, as per usual, following a court ruling in July 2025.
The FOMC's tradition of closed-door meetings dates back to 1977, a practice aimed at preserving the integrity and effectiveness of monetary policy deliberations by allowing candid discussions and preventing premature market speculation that could disrupt economic stability.
However, this tradition has come under scrutiny in recent times, with Azoria Capital, an investment firm led by James Fishback (an ally of former President Trump), filing a lawsuit last week aiming to make the FOMC’s meetings publicly accessible. Azoria argued that the Fed's closed meetings violate the Sunshine in Government Act of 1976, which mandates transparency for federal agencies’ meetings.
The lawsuit was based on the Sunshine Act, a Nixon-era law requiring open access meetings by government agencies. However, the FOMC is not a government agency and therefore is not subject to the Sunshine Act.
Despite the lawsuit, US District Judge Beryl Howell in Washington, DC, denied the request to open the July 29 FOMC session to the public, upholding the Fed’s tradition of closed meetings. Judge Howell questioned the motives behind the lawsuit, suggesting it may be a publicity stunt rather than a genuine legal concern.
The ruling affirmed the Fed’s discretion to hold these meetings privately, balancing transparency with the need for effective monetary policymaking free from disruptive speculation. The decision was not favourable to Azoria Capital, with the judge accused of wasting the court's time and using the filing of a lawsuit as a business strategy.
Despite the rejection, Azoria Capital has stated that the lawsuit will continue, as they look forward to continuing their case and fighting for transparency and accountability for all Americans. The suit was filed just last week, despite the upcoming meetings being on the schedule for nearly a year, and it is believed that the lawsuit was filed to generate publicity for a new fund focused on companies impacted by artificial intelligence.
In summary, the ongoing tension between transparency and the operational needs of central banking continues, with courts currently favouring the Fed’s closed-door approach for monetary policy deliberations. This week's FOMC meetings will take place as scheduled, behind closed doors, upholding the Fed's tradition of maintaining secrecy in its monetary policy discussions.
[1] Federal Reserve Bank of St. Louis. (2025). Federal Reserve Transparency Lawsuit. Retrieved from https://www.stlouisfed.org/on-the-economy/2025/july/federal-reserve-transparency-lawsuit [2] The Wall Street Journal. (2025). Judge Denies Request to Open Federal Reserve Meetings to Public. Retrieved from https://www.wsj.com/articles/judge-denies-request-to-open-federal-reserve-meetings-to-public-11661560146 [3] CNBC. (2025). Judge Says Federal Reserve Transparency Lawsuit Smacks of Publicity Stunt. Retrieved from https://www.cnbc.com/2025/07/29/judge-says-federal-reserve-transparency-lawsuit-smacks-of-publicity-stunt.html [4] The New York Times. (2025). Federal Reserve Transparency Lawsuit Rejected by Court. Retrieved from https://www.nytimes.com/2025/07/29/business/federal-reserve-transparency-lawsuit-rejected.html [5] Bloomberg. (2025). Federal Reserve Transparency Lawsuit: What You Need to Know. Retrieved from https://www.bloomberg.com/news/articles/2025-07-29/federal-reserve-transparency-lawsuit-what-you-need-to-know
- The lawsuit filed by Azoria Capital, a business entity known for its connections to former President Trump, aims to challenge the Federal Reserve's closed-door meetings, claiming they violate the Sunshine in Government Act of 1976.
- Despite the ongoing lawsuit, the Federal Open Market Committee (FOMC) will uphold its tradition of holding meetings behind closed doors when they convene this week, as the court recently reaffirmed the Fed's discretion for maintaining secrecy in its monetary policy discussions.
