Azoria Capital CEO Accuses Fed Chair Powell of "Money Laundering" in Emergency Lawsuit Over Secret FOMC Meetings

• Why Is Azoria Capital Suing the Federal Reserve?
• What’s at Stake in the Emergency Hearing?
• How Does the Fed Justify Its Secrecy?
• What Would Public FOMC Meetings Change?
• Could This Lawsuit Rewrite Fed Transparency Rules?
• FAQ: The Fed Transparency Lawsuit Explained

In a fiery legal showdown, Azoria Capital’s CEO James has filed an emergency lawsuit against Federal Reserve Chair Jerome Powell, alleging violations of the 1976 Sunshine Act. The lawsuit demands the Fed open its upcoming FOMC meeting to the public, accusing Powell of operating in "illegal secrecy." A federal judge has fast-tracked the case, with a hearing set just one day before the FOMC convenes. James argues that transparency is critical for markets, claiming closed-door decisions distort financial outcomes. Meanwhile, the Fed defends its privacy, citing risks of market speculation. This clash could redefine how interest rate decisions are made—and who gets to watch.

Why Is Azoria Capital Suing the Federal Reserve?

James, CEO of Azoria Capital, dropped a legal bombshell this week by accusing Fed Chair Jerome Powell of violating federal transparency laws. The lawsuit, filed in Washington DC, hinges on the 1976 Sunshine Act, which mandates that multi-headed federal agencies conduct business publicly. James claims the Fed’s FOMC—the powerful committee setting interest rates—has illegally operated behind closed doors for decades. "They’re breaking federal law and making trillion-dollar decisions in secret," he told reporters. "The American people pay for these policies; they deserve to see how they’re made."

What’s at Stake in the Emergency Hearing?

Judge Barl Howard, an Obama appointee, granted an emergency hearing for Monday—just 24 hours before the FOMC’s critical rate-setting meeting. Azoria’s lawsuit seeks a temporary injunction to block the meeting unless the Fed livestreams it. James argues this isn’t just procedural: "When Powell hinted in January 2022 that rates wouldn’t rise, he sparked more speculation than any open meeting ever could." The Fed counters that public sessions WOULD destabilize markets, but James calls this a "50-year-old excuse." If the injunction succeeds, it could force the Fed to delay Tuesday’s meeting and broadcast deliberations for the first time in history.

How Does the Fed Justify Its Secrecy?

The Fed’s legal team claims the Sunshine Act doesn’t apply to the FOMC because it’s technically a "subcommittee." James scoffs: "The most powerful part of the Fed—the one moving markets eight times a year—somehow isn’t covered? That’s a loophole, not a law." He also dismissed the Fed’s argument that transparency would fuel volatility, pointing to Powell’s own unscripted comments as bigger triggers. "They’re renovating their DC building with taxpayer money while hiding what happens inside. That’s the real scandal."

What Would Public FOMC Meetings Change?

James predicts radical shifts if the injunction passes: "Markets obsess over Powell’s tie color or speech length for clues. Imagine watching who actually argues for rate hikes—whose data wins, who folds under pressure." He expects biases to surface, noting Governor Chris Waller’s frequent silent dissent: "We’d hear why he disagrees and who shuts him down." Currently, traders parse meeting minutes released weeks later. A livestream could shift volatility to decision day itself. "This isn’t about politics—it’s about seeing if your mortgage rate is set by facts or faction."

Could This Lawsuit Rewrite Fed Transparency Rules?

Legal experts say the case could set a precedent. The Sunshine Act has rarely been tested against the Fed, and a ruling for Azoria might open other closed-door processes—from bank stress tests to liquidity operations. James insists he’s not anti-Fed: "We just want what Congress mandated in 1976. If the law needs updating, debate it publicly." With the hearing imminent, all eyes are on Judge Howard. As James puts it: "The Fed’s a black box. Americans are flying blind."

FAQ: The Fed Transparency Lawsuit Explained

What is Azoria Capital’s main complaint against the Fed?

Azoria alleges the FOMC violates the 1976 Sunshine Act by holding closed-door meetings to set interest rates, denying public oversight of decisions affecting mortgages, credit cards, and investments.

When will the court decide on the injunction?

Judge Barl Howard will hear arguments on Monday, July 28—one day before the scheduled FOMC meeting. A ruling could come the same day.

Has the Fed ever opened FOMC meetings to the public?

No. While the Fed publishes minutes three weeks post-meeting and holds press conferences, deliberations have always been private. This lawsuit demands real-time transparency.