In an unprecedented show of unity, the world’s most powerful central bankers have issued a joint statement to support Federal Reserve Chair Jerome Powell. This follows a dramatic escalation in tensions between the White House and the Fed, including a Department of Justice (DOJ) probe into Powell himself.
Here is the breakdown of why this is happening and who is standing with him.
The Conflict: A "Pretext" for Influence?
The current friction stems from a DOJ investigation and grand jury subpoenas involving Powell.
The Allegation: The DOJ is investigating testimony Powell gave regarding a $2.5 billion renovation of the Fed's headquarters, looking into potential "abuse of taxpayer dollars."
Powell’s Defense: In a rare and forceful video statement, Powell called the investigation a "pretext" and "intimidation." He argued the probe is actually a reaction to his refusal to lower interest rates as aggressively as the Trump administration has demanded.
The Stakes: Powell's term as Chair expires in May 2026, but he has vowed not to resign, stating he will continue to set policy based on "evidence, not politics."
The "Global Statement of Solidarity"
Today, January 13, 2026, eleven of the world's top central bank governors released a coordinated statement via the Bank for International Settlements (BIS). They warned that undermining the Fed's autonomy threatens global financial stability.
Key Signatories include:
Christine Lagarde (European Central Bank)
Andrew Bailey (Bank of England)
Tiff Macklem (Bank of Canada)
Michele Bullock (Reserve Bank of Australia)
The Heads of Central Banks in: Switzerland, Norway, Sweden, Denmark, South Korea, and Brazil.
"The independence of central banks is a cornerstone of price, financial and economic stability... It is therefore critical to preserve that independence, with full respect for the rule of law." — Excerpt from the Joint Statement
Domestic Support
It isn't just international peers backing him. Within the U.S., a coalition of former Fed Chairs—including Alan Greenspan, Ben Bernanke, and Janet Yellen—issued their own statement condemning the probe as an "unprecedented attempt to use prosecutorial attacks" to weaken the institution.
Even some Republican lawmakers, such as Senator Thom Tillis, have signaled they will block future Fed nominees until the independence of the DOJ's investigation is clarified.
#FedOfficialsSpeak #JeromPowel #BinanceSquareFamily $ZKP $DOLO $XVG