10 central banks and international monetary establishments again Fed chief Jerome Powell amid DOJ probe

London — The heads of 10 main central banks and international monetary establishments threw their collective help behind U.S. Federal Reserve Chairman Jerome Powell, saying in a joint assertion printed Tuesday that it was “vital to protect” the banks’ independence.

U.S. prosecutors have opened an inquiry into Powell, prompting his uncommon rebuke towards escalating stress from President Trump’s administration to decrease rates of interest.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” mentioned the assertion signed by heads of the European Central Financial institution, the Financial institution of England and others, together with the central banks of Australia, Brazil, Canada and South Korea.

“The independence of central banks is a cornerstone of worth, monetary and financial stability within the curiosity of the residents that we serve. It’s subsequently vital to protect that independence, with full respect for the rule of legislation and democratic accountability. Chair Powell has served with integrity, centered on his mandate and an unwavering dedication to the general public curiosity. To us, he’s a revered colleague who’s held within the highest regard by all who’ve labored with him,” the assertion mentioned.

The Federal Reserve acquired grand jury subpoenas from the Justice Division on Friday stemming from an investigation into its chair over the price of constructing renovations, Powell mentioned in a video assertion shared on Sunday.

The subpoenas threatened a legal indictment associated to Powell’s testimony earlier than the Senate Banking Committee in June 2025, throughout which he spoke a few multi-year mission to renovate historic Federal Reserve workplace buildings, in line with Powell.

He mentioned in his video assertion that the transfer by the Division of Justice ought to, nonetheless, be “seen within the broader context of the administration’s threats and ongoing stress.”

“This new menace is just not about my testimony final June or in regards to the renovation of the Federal Reserve buildings. It isn’t about Congress’ oversight position; the Fed, by means of testimony and different public disclosures, made each effort to maintain Congress knowledgeable in regards to the renovation mission. These are pretexts,” mentioned Powell. “The specter of legal fees is a consequence of the Federal Reserve setting rates of interest primarily based on our greatest evaluation of what is going to serve the general public, reasonably than following the preferences of the president.”

A number of former Fed chairs and Treasury secretaries have additionally condemned the Trump administration’s probe, as have members of Congress from each events.