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...