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Global central bank chiefs said they “stand in full solidarity” with Jay Powell, in an unprecedented show of support after US authorities launched a criminal investigation into the Federal Reserve chairman.
Central bank governors from 11 institutions issued a statement Tuesday saying they “stand in full solidarity with the Federal Reserve System and its Chairman, Jerome H. Powell,” who have been the target of repeated attacks by the Trump administration.
“The independence of central banks is a cornerstone of value, financial and economic stability in the interest of the citizens we serve,” the statement said.
Signatories included European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Bank of Canada head Tiff Macklem and Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos.
US prosecutors have launched a criminal investigation into Powell over a $2.5 billion renovation of the Fed’s headquarters, escalating the Trump administration’s attacks on the central bank.
Powell, who has previously stoked tensions with US President Donald Trump, has rejected the investigation as aimed at robbing the Fed of its monetary policy independence.
The Fed chair’s term is set to end in May, with a successor yet to be announced by the Trump administration. But National Economic Council director and Trump ally Kevin Hassett and Kevin Warsh, who previously served on the Fed Board of Governors, are widely considered the frontrunners.
Trump faces growing criticism on Capitol Hill over the Justice Department investigation, even from within his own party. Republican senators, including Thom Tillis of North Carolina and Lisa Murkowski of Alaska, have publicly expressed concerns about the risks of jeopardizing the Fed’s independence.
Tillis said he would oppose the confirmation of any nominee to the central bank until the matter was resolved, a stance supported by Murkowski.
The investigation has prompted Fed officials to resist Trump’s attacks and could pressure the chair to remain governor in 2028, according to officials, the FT reported on Monday.
New York Fed President John Williams defended Powell on Monday evening, calling him “a man of impeccable integrity.”
He also warned that history has shown that when efforts to weaken central bank independence have succeeded, it often has “very unfortunate economic consequences.”
Other signatories to Tuesday’s letter were the heads of the Swedish, Danish, Swiss, South Korean, Australian and Brazilian central banks. Banque de France head François Villeroy de Galhau signed in his capacity as Chairman of the BIS Board.
