A group of global central bank leaders has issued a joint statement expressing their support for Federal Reserve Chair Jerome Powell, who is facing a criminal investigation from the Trump administration’s Department of Justice. The investigation is related to perjury allegations stemming from Powell’s testimony before the Senate Banking Committee last summer regarding the Fed’s renovation project. Powell has denied any wrongdoing and claims that the probe is a pretext for applying political pressure on the Fed to lower interest rates.
The statement, signed by central bank leaders from around the world, including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey, expresses “full solidarity” with Powell and the Federal Reserve System. The signatories emphasize the importance of preserving the independence of central banks, which is “a cornerstone of price, financial, and economic stability in the interest of the citizens we serve.”
Powell has stated that he has “deep respect for the rule of law and for accountability in our democracy,” but believes that the investigation is an attempt to intimidate the Fed into setting interest rates based on political pressure rather than economic conditions. He claims that the investigation is not about his testimony or the renovation project, but rather about the Fed’s independence and its ability to set interest rates based on evidence.
President Trump has been critical of Powell and the Fed, accusing them of mismanaging the economy and calling for lower interest rates. Trump has denied knowledge of the subpoenas and claims that he would not pressure Powell to cut rates. However, U.S. Attorney Jeanine Pirro has stated that the Fed repeatedly failed to respond to outreach from her office regarding the alleged cost overruns in the renovation project and Powell’s testimony.
The renovation project has been a source of controversy, with estimated costs rising from $1.9 billion in 2019 to nearly $2.5 billion in 2025. Trump has claimed that the project will cost over $4 billion, but this figure has been disputed by Powell. The investigation and controversy surrounding the Fed and Powell are part of a larger clash between Trump and the Fed, which has reached unprecedented levels.