Central banks across the world have joined together to declare that they stand in full solidarity with the Federal Reserve's chair after the US launched a criminal investigation into Jerome Powell.
The heads of the Bank of England, the European Central Bank, and the Bank of Canada are among 11 senior bankers who have signed a statement highlighting the importance of independence in setting interest rates.
Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest, they said.
The Department of Justice is conducting the probe, linked to testimony Powell gave to a Senate committee about renovations to Federal Reserve buildings. This inquiry follows a year of relentless attacks on Powell's authority by President Trump.
Commenting on Powell's situation, the global central bankers stated: To us, he is a respected colleague who is held in the highest regard by all who have worked with him. Powell, who is set to step down in May, had previously remained silent but warned on Sunday that the independence of the US central bank is at stake.
They emphasized that central bank independence is crucial for maintaining price stability and protecting democratic accountability.
Amid this turmoil, Powell has found support from former Fed chairs, highlighting a concerning trend where political interference threatens the neutrality of monetary policy.
