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Global central banks defend Powell
Global central bank chiefs issued an unusually coordinated public statement defending Federal Reserve Chair Jerome Powell after federal prosecutors opened a criminal probe tied to renovations at the Fed's Washington headquarters.
“said they “stand in full solidarity” with Powell and stressed that central bank independence is vital for price, financial and economic stability.”
Signatories said they "stand in full solidarity" with Powell and stressed that central-bank independence is essential for price, financial and economic stability, framing the intervention as a defense of institutional independence rather than a partisan stance.
These displays of support were described across outlets as a rare and extraordinary show of international backing for the Fed chief amid the Justice Department's inquiry and related subpoenas.
Central banks' joint statement
The joint release was signed by a wide set of central-bank leaders, including ECB President Christine Lagarde and Bank of England Governor Andrew Bailey.
Other chiefs from Brazil, Switzerland, Sweden, Denmark, South Korea, Australia and Canada were also listed, with initial reports saying 11 signatories and some later accounts reporting 12.
Several outlets listed the same core roster and said the statement framed support for Powell as backing institutions and rules rather than partisan politics.
Some signatories personally praised Powell's integrity and commitment to his mandate.
Fed probe controversy
Powell pushed back, calling the subpoenas and probe politically motivated and a possible pretext to pressure the Fed to change policy.
“Powell said the renovation and related testimony were "pretexts" and warned that threats of criminal charges stem from the Fed setting rates based on what serves the public rather than the president's preferences.”
He warned the inquiry could determine whether monetary policy is set by evidence and economic conditions or by political intimidation.
Several outlets reported Powell’s statement and noted that former Fed chairs, ex-Treasury officials and bipartisan lawmakers have condemned the investigation.
Markets showed modest immediate reactions in some accounts, with the dollar weakening.
Analysts warned that politicizing the Fed could risk higher inflation or longer-term market consequences.
Federal Reserve renovation probe
The legal matter centers on the $2.5 billion renovation of the Federal Reserve’s historic Washington headquarters, an expense that prompted grand-jury subpoenas and federal scrutiny.
Reports uniformly describe subpoenas and a Department of Justice inquiry into the renovation costs and related congressional testimony, and outlets emphasize the cost, the subpoenas, and the possibility of grand-jury proceedings as central elements of the developing story.
Media reactions and implications
MTGamer notes additional commentary from figures like JP Morgan CEO Jamie Dimon and former UK PM Liz Truss, and cites China’s reaction to other U.S. policy moves.
“Other threads in the coverage: JP Morgan’s CEO Jamie Dimon called the U.S. economy resilient but cautioned about risks (sticky inflation, stretched asset prices); former UK PM Liz Truss attacked central bank independence; China condemned proposed U.S. tariffs related to Iran; and the U.S. attorney defending the subpoenas said the DOJ had tried to engage the Fed before resorting to legal process.”
TradingView and CNBC stress that the signatories framed their support as institutional and respectful of the rule of law.
Some outlets include commentary from former Fed chairs and bipartisan lawmakers condemning the probe.
Other outlets emphasize potential market and inflation consequences of politicizing central banking.