Judge blocks subpoenas for Federal Reserve

WASHINGTON — A federal judge on Friday quashed Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that already attracted strong criticism on Capitol Hill.

The investigation into testimony last June by Chair Jerome Powell about a $2.5 billion building renovation also delayed Senate consideration of Kevin Warsh, President Donald Trump's pick to replace Powell when his term ends May 15.

Judge James Boasberg said the government "produced essentially zero evidence to suspect Chair Powell of a crime" and called its justifications for the subpoenas so "thin and unsubstantiated" that they were simply a pretext to force Powell to cut rates, as Trump demanded.

The ruling blocks U.S. Attorney Jeanine Pirro, who issued the subpoenas, from obtaining records from the Fed related to the building renovation. Pirro said she would appeal it.