Global central bank leaders issued an unusually unified show of support for Federal Reserve Chair Jerome Powell after the Trump administration threatened a criminal indictment linked to his congressional testimony.
The statement, released Tuesday, marked a rare intervention by foreign monetary authorities into U.S. domestic controversy, reflecting concern over mounting political pressure on the Federal Reserve.
The dispute centers on testimony Powell gave last summer regarding renovations to the Fed’s headquarters, which he has described as a pretext for exerting influence over interest rate policy.
The heads of the European Central Bank, the Bank of England, the Bank of Canada, and several other institutions said they stood “in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.”
The signatories said Powell had acted with integrity and emphasized that independence from political influence underpins modern central banking.
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.”
Officials involved said ECB President Christine Lagarde helped drive the coordinated response, with logistical support from the Bank for International Settlements.
Central bank chiefs from Sweden, Denmark, Switzerland, Australia, South Korea, Brazil, and France joined the statement, alongside senior BIS officials.
The Bank of Japan did not sign, with a spokesman saying it refrained from commenting, though sources said support had been expressed privately.
The list of signatories was described as open, with additional names still possible.
The U.S. inquiry has drawn criticism from global financial circles and from some members of Trump’s Republican Party.
Central bankers fear political influence over the Fed could weaken confidence in its commitment to controlling inflation.
Such erosion of trust could lead to higher inflation, increased market volatility, and spillover effects across global financial systems.
Some officials also worry that a politicized Fed might reconsider its role as a provider of dollar liquidity during periods of stress.
While alternatives such as pooling dollar reserves have been discussed, they are widely seen as insufficient during systemic crises.
Powell has warned publicly that the issue goes beyond his position and threatens evidence-based monetary policy.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation.”
Powell, nominated by Trump in 2017, is due to step down in May, with his successor expected to be named soon.
Several Republican senators have criticized the investigation, warning it could delay confirmation of future Fed appointments.
Former Fed chairs and senior officials have also backed Powell, arguing the investigation risks undermining institutional credibility.