Finance
Global central bankers defend Fed's Powell after Trump threat
Published by Global Banking and Finance Review
Posted on January 13, 2026
Central Bank Leaders Rally Behind Fed Chair Powell Amid Trump Threats
Central Banks Unite in Support of Powell
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.
Statement of Solidarity
"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.
Importance of Central Bank Independence
"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.
Context of the U.S. Probe
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)
Frequently Asked Questions about Global central bankers defend Fed's Powell after Trump threat
1What is a central bank?
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.
2What is monetary policy?
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.
3What are interest rates?
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.
4What is financial stability?
Financial stability is a condition where the financial system operates effectively, with stable financial institutions and markets, allowing for smooth economic transactions and growth.
