Central bank governors from around the world issued a joint statement on Tuesday in support of the President of the Federal Reserve of the United States, Jerome Powell, after an investigation was launched against him in the United States. The initiative comes in a tense context, marked by political pressures on American monetary policy.
„We express our full solidarity with the Federal Reserve System and its president, Jerome H. Powell,” the joint statement signed by several central bank leaders reads. Among them are Christine Lagarde, President of the European Central Bank, and Andrew Bailey, Governor of the Bank of England.
The signatories emphasize that the independence of central banks represents "a cornerstone of price stability, financial and economic stability, in the interest of the citizens we serve," stating that this must be protected with respect for the rule of law and democratic responsibility.
"A respected colleague, highly appreciated"
According to the statement, Jerome Powell has carried out his mandate "with integrity, focused on his objectives and with a strong commitment to the public interest." Governors describe him as "a respected colleague, highly appreciated at the highest level by all who have worked with him."
The message is also supported by the heads of central banks from Brazil, Switzerland, Sweden, Denmark, South Korea, Australia, and Canada, giving the statement an unprecedented breadth of support for an American official under investigation.
Trump Attacks Powell Again
Donald Trump attacked Jerome Powell again on Tuesday, labeling him as "incompetent" or "corrupt."
Trump made the statements after being asked by journalists whether the criminal investigation launched by the Department of Justice risks undermining confidence in the Federal Reserve, an institution that has benefited for decades from independence from the executive power.
"He's billions of dollars over budget. So either he's incompetent or he's corrupt. I don't know which one. But he's certainly not doing a very good job," Trump said, referring to the costs of renovating the Fed's headquarters in Washington, a multi-billion-dollar project at the center of federal prosecutors' investigation.
Criminal Investigation and Allegations of Political Pressure
Powell confirmed on Sunday evening that federal prosecutors have opened a criminal investigation into the renovation of the Federal Reserve headquarters in Washington, a $2.5 billion project, as well as his statements before Congress regarding this project.
The Fed chief stated that the investigation is a result of constant pressures exerted by the U.S. President, Donald Trump, who has repeatedly asked him to lower interest rates more rapidly and aggressively.
What Powell Says About the Stakes of the Investigation He Faces
"The threat of criminal charges is a consequence of the fact that the Federal Reserve sets interest rates based on the best assessment of the public interest, and not based on the preferences of the president," Powell said in a video message posted on the Fed's official X platform account.
He warned that the stakes of the investigation go beyond his personal case and concern the future of American monetary policy. "It's about whether the Fed will be able to continue setting interest rates based on evidence and economic conditions or if monetary policy will be dictated by political pressures or intimidation," said Jerome Powell.