Global central banks issued a statement on Tuesday defending US Federal Reserve Chairman Jerome Powell,
“We stand in full solidarity with the Federal Reserve System and its Chairman Jerome H. Powell,” central bank chiefs including European Central Bank (ECB) President Christine Lagarde and Bank of England Governor Andrew Bailey said in a joint statement.
“The independence of central banks is a cornerstone of price, financial and economic stability, in the interests of the citizens we serve. It is therefore critical to preserve this independence, with full respect for the rule of law and democratic accountability,” they added.
Take advantage of the stock market rise!
Powell has acted with “integrity, focused on his mandate and with an unwavering commitment to the public interest,” the statement said.
“To us, he is a respected colleague who is highly regarded by everyone who has worked with him.”
Read more:
Continues after advertising
The message of solidarity with Powell comes after the Fed chief issued a statement Sunday night confirming that federal prosecutors have opened a criminal investigation into the $2.5 billion renovation of the central bank’s headquarters in Washington, D.C., and his related testimony to Congress.
Powell, who has come under constant pressure from U.S. President Donald Trump to cut interest rates, said the investigation is a result of the president’s frustration at not being able to cut rates as quickly and widely as he wanted.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what serves the public, rather than following the President’s preferences,” Powell said in a video released by the Fed’s X (formerly Twitter) account.
Powell warned that the outcome of the investigation will determine the future of the central bank’s decisions.
“This is about whether the Fed can continue to set interest rates based on evidence and economic conditions — or whether, instead, monetary policy will be driven by political pressure or intimidation,” Powell said.
President Donald Trump has repeatedly advocated aggressive interest rate cuts, arguing that the Fed should act to increase housing affordability and ease the government’s borrowing costs. In an interview with NBC News on Sunday about the central bank.
Continues after advertising
White House press spokeswoman Karoline Leavitt told reporters on Monday that the president did not order the investigation and defended his right to criticize the central bank.
(with international agencies)
