Top central bankers express 'full solidarity' with Fed Chair Powell in clash with Trump

In a rare and strongly worded show of unity, central bankers from across the world on Tuesday declared they “stand in full solidarity” with US Federal Reserve Chair Jerome Powell , after President Donald Trump dramatically escalated his confrontation with the Fed through a Justice Department investigation and threats of criminal action. The joint statement praised Powell’s integrity and commitment to the public interest, while warning that central bank independence is a cornerstone of price and economic stability that must be protected with respect for the rule of law and democratic accountability.

The dispute has been sparked by Powell’s June testimony to Congress regarding the cost of a major renovation of Federal Reserve buildings, but Powell has argued the legal pressure is being used as a “pretext” in a broader campaign by the Trump administration to influence US interest rate policy. Breaking from his earlier approach of ignoring Trump’s criticism, Powell publicly responded after the Federal Reserve received grand jury subpoenas on January 9, 2026 , warning that the step was linked to a potential criminal indictment tied to his congressional remarks.

Trump has repeatedly criticised Powell and the Fed for not cutting interest rates fast enough, intensifying fears among economists that monetary policy could be pulled into partisan conflict. Analysts caution that a politicised Fed pressured into lowering rates could damage its credibility as an inflation fighter and unsettle markets, prompting investors to demand higher returns before purchasing US Treasurys and raising borrowing costs for the government.

The solidarity statement was signed by nine national central bank heads, including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey , along with Erik Thedeen of Sweden, Christian Kettel Thomsen of Denmark, Swiss National Bank Chair Martin Schlegel, Reserve Bank of Australia Governor Michele Bullock, Bank of Canada Governor Tiff Macklem, Bank of Korea Governor Chang Yong Rhee, and Brazil’s central bank governor Gabriel Galipolo. Senior officials of the Bank for International Settlements (BIS) an international organisation of central banks headquartered in Basel, Switzerland also endorsed the statement, reinforcing the global significance of the message.

Notably, the Bank of Japan was not among the initial signatories, though the statement indicated additional names could be added later. The coordinated intervention highlights growing international concern that escalating political and legal pressure on the US central bank could undermine confidence in monetary governance at a time when global investors closely watch the Federal Reserve as the world’s most influential central bank.