Global central bankers back Fed chair Jerome Powell after criminal probe

Central bankers around the world signed a statement of support for Federal Reserve chair Jerome H. Powell on Tuesday, defending the Fed from attacks by the Trump administration that have been widely seen as trying to erode the U.S. central bank’s independence. Eleven central bankers expressed their support, including Christine Lagarde of the European Central Bank, Andrew Bailey of the Bank of England, Tiff Macklem of the Bank of Canada and Chang Yong Rhee of the Bank of Korea.

François Villeroy de Galhau and Pablo Hernández de Cos of the Bank for International Settlements also signed. “We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the statement said, adding that “the independence of central banks is a cornerstone of price, financial and economic stability.” U.S.

federal prosecutors opened a criminal investigation into Mr. Powell over the Fed’s renovation of its Washington headquarters and whether he lied to Congress about the scope of the project. The investigation followed months of pressure from President Trump and other officials for the central bank to cut interest rates; the Trump administration said it was concerned about affordability, including mortgages.

Mr. Powell condemned the investigation on Sunday, saying it was an effort to undermine the bank’s independence and to pressure policymakers to substantially lower interest rates for political reasons.

Key Topics

Business, Jerome Powell, Federal Reserve, Trump Administration, European Central Bank, Criminal Investigation