Global central bank leaders rally behind Fed Chair Jerome Powell amid pressure from Trump

Leaders of the world’s leading central banks have publicly backed the US Federal Reserve and its chair, Jerome Powell, stressing that safeguarding central bank independence is essential for economic stability. In a joint statement released on Tuesday (January 13), senior policymakers warned that political pressure on the Fed threatens its ability to act in the public interest. The show of unity followed a controversial move by US prosecutors, who issued subpoenas to Powell in a step widely viewed as escalating President Donald Trump’s long-running conflict with the central bank.

Powell broke with tradition on Sunday by responding publicly, pledging that monetary policy decisions would continue to be made “without political fear or favour.” “We express our full support for the Federal Reserve System and Chair Jerome H. Powell,” the statement said. It was endorsed by figures including European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and South Korean central bank chief Rhee Chang-yong. The Bank of Japan did not sign the statement.

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President Trump renewed his criticism of Powell on Tuesday, accusing him of mismanaging a costly renovation of the Fed’s Washington headquarters. Trump suggested the Fed chair was either “incompetent” or “crooked,” continuing a pattern of personal attacks tied to disagreements over interest rate policy. JP Morgan Chase CEO Jamie Dimon cautioned that undermining the Fed could have unintended consequences. He said broad confidence in the central bank’s independence is critical and warned that political interference would likely do more harm than good, even for those who disagree with Fed decisions.

Support also came from the heads of central banks in Australia, Brazil, Canada, Denmark, Norway, Sweden, and Switzerland, as well as the chair of the Bank for International Settlements. At the center of the dispute is a $2.5 billion renovation of the Fed’s historic headquarters, which Trump has repeatedly cited as evidence of mismanagement.