Central Banks Unite in Support of Fed Chair Powell Amid Political Pressure

Global central bank leaders have rallied behind U.S. Federal Reserve Chair Jerome Powell, warning that political interference could destabilize financial markets worldwide. The show of solidarity comes as the TRUMP administration escalates a $2.5 billion criminal probe tied to the Fed's headquarters renovation, raising concerns over central bank independence.

Officials from 11 major institutions—including the European Central Bank, Bank of England, and Swiss National Bank—issued a joint statement affirming their "full solidarity" with Powell. They emphasized that operational autonomy remains critical for price stability and public confidence, particularly as the Justice Department threatens criminal indictments related to Powell's 2025 Senate testimony.

The unprecedented support follows Powell's public remarks confirming grand jury subpoenas against the Fed. Market participants now watch for Ripple effects across asset classes, including cryptocurrencies that often react to macroeconomic uncertainty.