{"id":111033,"date":"2026-01-14T04:47:00","date_gmt":"2026-01-14T04:47:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=111033"},"modified":"2026-01-14T04:47:00","modified_gmt":"2026-01-14T04:47:00","slug":"world-central-bank-chiefs-stand-in-solidarity-with-us-fed-chair-powell","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=111033","title":{"rendered":"World central bank chiefs \u2018stand in solidarity\u2019 with US Fed chair Powell"},"content":{"rendered":"
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Central banks worldwide have joined together to declare that they stand in \u201cfull solidarity\u201d with the Federal Reserve chair after the US launched a criminal investigation into Jerome Powell.<\/p>\n

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.<\/p>\n

\u201cChair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest,\u201d they said.<\/p>\n

The Department of Justice is conducting the probe. President Donald Trump has said he did not \u201cknow anything\u201d about the investigation.<\/p>\n

The probe is linked to testimony Powell gave to a Senate committee about renovations to Federal Reserve buildings.<\/p>\n

It follows a year of relentless attacks on the Fed chair by Trump, who has pushed the Fed to lower borrowing costs more aggressively.<\/p>\n

As well as criticising Powell\u2019s decisions on interest rates, Trump has made personal comments, calling the Fed chair a \u201cmajor loser\u201d and a \u201cnumbskull\u201d.<\/p>\n

Commenting on the Fed chair, the global central bankers said in their joint statement: \u201cTo us, he is a respected colleague who is held in the highest regard by all who have worked with him.\u201d<\/p>\n

Until the weekend, Powell had stayed largely silent in the face of Trump\u2019s attacks but on Sunday, he publicly pushed back and warned that the independence of the US central bank was at stake.<\/p>\n

\u201cThis is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,\u201d Powell said.<\/p>\n

The Fed has cut interest rates three times since September, leaving its key lending rate at around 3.6%.<\/p>\n

But policymakers are divided about what to do next. Some are worried additional reductions could stoke inflation, which continues to bubble.<\/p>\n

Consumer prices rose 2.7% over the 12 months to December, according to official figures published on Tuesday. That was the same rate as in November and remained higher than the Fed\u2019s 2% target.<\/p>\n

In their joint statement on Tuesday, the international financial institutions said: \u201cThe independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.<\/p>\n

\u201cIt is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.\u201d<\/p>\n

Powell, who Trump nominated as Fed chair in 2017 during his first term in the White House, is set to step down in May.<\/p>\n

Trump is expected to name his successor in the coming weeks.<\/p>\n

Several Republicans have spoken out against the justice department\u2019s move against the Fed.<\/p>\n

North Carolina Senator Thom Tillis, a Republican who is a member of the Senate Banking Committee, said he would oppose the nomination of Powell\u2019s replacement by Trump, and any other Fed Board nominee, until the matter was \u201cfully resolved\u201d.<\/p>\n

The committee must approve the next Fed nominee so if Tillis keeps that pledge, it could delay the nomination of any Trump pick to replace Powell.<\/p>\n

His Republican colleague on the committee, Senator Kevin Cramer, said he thought Powell was a poor Fed chairman but did not believe he was a criminal. To restore confidence in the Fed, he added, the investigation should be swift.<\/p>\n

Another Republican senator, Lisa Murkowski, described the investigation as \u201can attempt at coercion\u201d.<\/p>\n

Powell has also been\u00a0backed by three former chairs of the Fed\u00a0\u2013 Janet Yellen, Ben Bernanke and Alan Greenspan. A number of other eminent former officials have publicly declared their support for him and the bank\u2019s independence.<\/p>\n

Yellen, who was Powell\u2019s immediate predecessor, said the criminal investigation was \u201cextremely chilling\u201d, adding that investors should be concerned.<\/p>\n

\u201cYou have a president that says the Fed should be cutting rates to lower rate payments on the federal debt\u2026 It is the road to banana republic,\u201d she told CNBC.<\/p>\n

The signatories in full are:<\/p>\n