Global central bankers defend Fed Chair Jerome Powell

Global central bankers issued a statement Tuesday defending U.S. Federal Reserve Chair Jerome Powell following the launch of a criminal investigation into the central bank chief.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” central bank chiefs including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey, said in a joint statement.

“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” they added.

Powell has served with “integrity, focused on his mandate and an unwavering commitment to the public interest,” the statement said.

“To us, he is a respected colleague who is held in the highest regard by all who have worked with him.”

Other signatories to the statement included the central bank chiefs of Brazil, Switzerland, Sweden, Denmark, South Korea, Australia, and Canada.

The message of solidarity with Powell comes after the Fed chief issued a statement on Sunday evening confirming that federal prosecutors had launched a criminal investigation into the $2.5 billion renovation of the central bank’s headquarters in Washington, D.C., and his related testimony to Congress.

Powell, who has come under sustained pressure from U.S. President Donald Trump to lower interest rates, said the probe was the result of the president’s frustration to cut rates as quickly and as much as he wanted.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a video statement tweeted by the Fed’s X account.

Powell warned that the outcome of the investigation will determine the future of the central bank’s decisions.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.

— CNBC’s Dan Mangan contributed reporting to this story.