Published by Global Banking & Finance Review®
Posted on January 13, 2026
1 min readLast updated: January 19, 2026
Add as preferred source on GoogleCentral banks globally rally behind Fed Chair Powell, defending independence amid Trump's threats of indictment over Fed HQ renovations.
FRANKFURT, Jan 13 (Reuters) - The chiefs of many of the world's major central banks issued a joint statement in support of Federal Reserve chair Jerome Powell on Tuesday after the Trump administration threatened him with a criminal indictment.
"We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell," the heads of the European Central Bank, the Bank of England and nine other institutions said.
"The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve," they added.
The U.S. administration's criminal probe is formally about the renovation of the Fed's headquarters but Powell called it a "pretext" to win presidential influence over interest rates.
(Reporting by Francesco Canepa; Editing by Andrew Heavens)
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It oversees monetary policy and aims to ensure financial stability.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation and stabilizing currency.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and affect economic activity.
Financial stability is a condition where the financial system operates effectively, with stable financial institutions and markets, allowing for smooth economic transactions and growth.
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