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Global Central Banks Prepare Statement of Support for Powell

Published January 13, 2026, 11:19
Global Central Banks Prepare Statement of Support for Powell

Central banks worldwide are working on a joint statement of support for Federal Reserve Chairman Jerome Powell following the launch of a criminal investigation against him by the Trump administration. The statement, expected to be issued by the Bank for International Settlements (BIS), will be open for signature by all central banks. The investigation concerns Powell's statements regarding cost overruns in the renovation of the Fed's headquarters, totaling $2.5 billion. The Trump administration's move has drawn strong criticism from former Fed leaders and Republican officials. Powell himself described the investigation as a 'pretext,' arguing that the president's goal is to influence interest rate decisions. The potential joint statement is seen as an effort to defend the independence of central banks, which is crucial for the stability of the global financial system. The BIS, often referred to as the 'central bank of central banks,' plays a significant role in international monetary cooperation. This case highlights the increasing politicization of monetary policy and the potential implications for confidence in central banks. The international community is closely monitoring developments, as the independence of central banks is considered fundamental to effective economic management.