London — The heads of 10 major central banks and global financial institutions threw their collective support behind U.S. Federal Reserve Chairman Jerome Powell, saying in a joint statement published Tuesday that it was “critical to preserve” the banks’ independence. U.S. prosecutors have opened an inquiry into Powell, prompting his rare rebuke against escalating pressure from President Trump’s administration to lower interest rates. “We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” said the statement signed by heads of the European Central Bank, the Bank of England and others, including the central banks of Australia, Brazil, Canada and South Korea.”The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him,” the statement said.The Federal Reserve received grand jury subpoenas from the Justice Department on Friday stemming from an investigation into its chair over the cost of building renovations, Powell said in a video statement shared on Sunday.The subpoenas threatened a criminal indictment related to Powell’s testimony before the Senate Banking Committee in June 2025, during which he spoke about a multi-year project to renovate historic Federal Reserve office buildings, according to Powell.He said in his video statement that the move by the Department of Justice should, however, be “seen in the broader context of the administration’s threats and ongoing pressure.””This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’ oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts,” said Powell. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”Multiple former Fed chairs and Treasury secretaries have also condemned the Trump administration’s probe, as have members of Congress from both parties.

Read More