Judge quashes Fed subpoenas, saying DOJ has ‘produced essentially zero evidence’ against Powell, who hints at future as board governor

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

The investigation into testimony last June by Chair Jerome Powell about a $2.5 billion building renovation has 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 that the government has “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 interest rates, as Trump has repeatedly demanded.

“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” he wrote.

The unprecedented investigation into Powell and the Fed is the latest in a series of moves by the Trump administration pressure the central bank, which has for decades been considered as independent from day-to-day politics. Trump has also sought to fire Lisa Cook, a member of the Fed’s governing board, after a member of his administration accused her of mortgage fraud, though no charges were ever filed. The Supreme Court has blocked Cook’s firing for now.

Boasberg’s ruling blocks U.S. Attorney Jeanine Pirro, who issued the subpoenas, from obtaining records from the Fed related to the building renovation. Pirro blasted the ruling at a news conference and said she would........

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