United Against the Pressure: Global Central Bankers Rally Behind Jerome Powell Amid Investigation

In a powerful show of solidarity, central banks worldwide have voiced their unwavering support for Federal Reserve Chair Jerome Powell amidst a criminal investigation launched by the U.S. Department of Justice. This joint statement, signed by leaders including the Bank of England and the European Central Bank, emphasizes the importance of central bank independence in maintaining economic stability and integrity in policymaking.

The probe relates to testimony Powell provided regarding renovations to Federal Reserve buildings, following ongoing critical remarks from President Donald Trump, who has pressured the Fed to lower interest rates. In their statement, the global central bankers praised Powell’s commitment to the public interest, asserting, “Chair Powell has served with integrity.”

Facing mounting scrutiny, Powell publicly defended the Federal Reserve’s independence, warning against the influence of political pressure on monetary policy. The Fed has reduced interest rates three times since September, with concerns growing about inflation, which is currently above the Fed’s target rate of 2%.

As the investigation into Powell unfolds, Republican senators have expressed mixed reactions, with some supporting Powell and stating they would oppose any efforts by Trump to replace him until the matter is resolved. Furthermore, past Fed chair holders like Janet Yellen and Ben Bernanke have publicly criticized the investigation, calling it an alarming tactic that could undermine the credibility of the central bank. Overall, this situation highlights the critical tension between political influence and the demands of economic governance.