In an extraordinary display of international unity, central bank governors from the world’s most influential financial institutions have issued a joint declaration expressing ‘full solidarity’ with Federal Reserve Chairman Jerome Powell amid an unprecedented legal challenge. The remarkable show of support comes as U.S. prosecutors have initiated criminal investigation proceedings against Powell, a move widely interpreted as an escalation of President Donald Trump’s ongoing campaign against the central bank’s independence.
The coordinated statement, endorsed by the heads of the European Central Bank, Bank of England, and counterparts from Australia, Brazil, Canada, Denmark, South Korea, Sweden, Switzerland, along with the Bank for International Settlements chairman, emphasized that central bank independence represents ‘a cornerstone of price, financial and economic stability.’ The leaders unanimously praised Powell’s ‘integrity’ and ‘unwavering commitment to the public interest’ in executing his mandate.
At the heart of the controversy lies a $2.5 billion renovation project of the Federal Reserve’s Washington headquarters, which President Trump has repeatedly criticized as mismanaged. The president had previously contemplated dismissing Powell over cost overruns for the historic building’s facelift and has publicly derided the Fed chair as a ‘numbskull’ and ‘moron’ regarding interest rate policies.
Powell responded to the legal threats in a rare video statement Sunday, characterizing the renovation inquiry and related testimony demands as ‘pretexts’ for challenging the Fed’s interest rate decisions. He asserted that the criminal investigation threat directly results from the Federal Reserve’s commitment to setting rates based on economic assessments rather than presidential preferences, vowing to continue monetary policy decisions ‘without political fear or favor.’