Top central bank leaders from around the world have come out in support of US Federal Reserve chair Jerome Powell. This rare show of unity comes after news of a criminal investigation linked to the Federal Reserve.
Federal prosecutors are looking into a $2.5 billion renovation of the Fed’s headquarters in Washington DC. The probe also involves Powell’s past testimony to Congress about the project.
On Tuesday, central bank leaders released a joint statement. They said they stand fully with the Federal Reserve and its chair. They described the situation as a serious moment for global monetary policy.
The leaders warned that the case raises a bigger question. They said it tests whether interest rate decisions can stay free from political pressure.
Powell himself confirmed the investigation on Sunday evening. He also warned that the issue could affect how interest rates are decided in the United States.
The statement was signed by major figures. These included European Central Bank president Christine Lagarde and Bank of England governor Andrew Bailey.
Support also came from central bank leaders in Brazil, Switzerland, Sweden, Denmark, South Korea, Australia, and Canada.
They stressed that central bank independence is essential. They said it helps protect price stability and financial stability. They added that this independence exists to serve ordinary citizens.
At the same time, they said independence must still respect the rule of law and democratic oversight.
The message was careful in tone. It focused on protecting institutions, not politics. The leaders said the situation could have consequences far beyond the Federal Reserve.
They also praised Powell directly. They said he has acted with integrity and stayed focused on his responsibilities. They described him as a respected colleague who serves the public interest.
The investigation itself centers on the costly renovation of the Fed’s headquarters. The $2.5 billion price tag has drawn attention because of the Fed’s powerful role in shaping the economy.
By confirming the probe publicly, Powell brought the issue into full view of markets and policymakers.
Powell has also faced growing pressure from President Donald Trump. Trump has repeatedly pushed the Fed to cut interest rates faster and more deeply.
In his Sunday remarks, Powell linked the investigation to that pressure. He said the probe reflects frustration with the Fed’s refusal to move rates based on political demands.
In a video posted on the Fed’s official X account, Powell said the threat of criminal charges came from the Fed doing its job independently. He said rates were set based on economic data, not presidential wishes.
He described the moment as a critical test. He said it would show whether the central bank can keep making decisions based on evidence and conditions. Or whether policy could be shaped by pressure or intimidation instead.
