Global central bankers defend Fed's Powell after Trump threat

• Eleven central bank chiefs jointly declared 'full solidarity' with Powell and the Federal Reserve System
• The statement emphasized that central bank independence is 'a cornerstone of price, financial and economic stability'
• The criminal probe officially concerns Fed headquarters renovations but is seen as an attempt to gain presidential control over monetary policy and interest rates

Summary: Global Central Bankers Defend Fed's Powell After Trump Threat

Key Development:

On January 13, 2026, leaders of major global central banks issued a joint statement supporting Federal Reserve Chair Jerome Powell after the Trump administration threatened him with criminal indictment. The heads of the European Central Bank, Bank of England, and nine other institutions signed the declaration.

Main Statement:

The central bankers declared "full solidarity" with Powell and the Federal Reserve System, emphasizing that "the independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve."

Background:

The U.S. administration formally launched a criminal probe related to the renovation of the Fed's headquarters. However, sources suggest this is viewed as a "pretext" to gain presidential influence over interest rate decisions—a move that would undermine the Fed's traditional independence from political interference.

Market Implications:

This unprecedented international show of support highlights growing concerns about central bank independence in the United States. The threat to the Fed chair represents a significant departure from established norms separating monetary policy from political pressure. Central bank independence is widely regarded as essential for maintaining credible inflation control and financial stability.

The coordinated response from 11 major central banking institutions signals serious alarm within the global financial community about potential politicization of U.S. monetary policy. Any perceived loss of Fed independence could impact market confidence, complicate inflation management, and potentially affect dollar stability and U.S. Treasury markets.

Date: January 13, 2026

Source Location: Frankfurt