A group of global central bank leaders issued a joint statement on Tuesday to express their support for Federal Reserve Chair Jerome Powell as he faces a criminal investigation from the Trump administration’s Department of Justice.
Powell announced on Sunday that the DOJ served grand jury subpoenas to the Federal Reserve on Friday related to an investigation into perjury allegations stemming from his testimony before the Senate Banking Committee last summer on the Fed’s renovation project. He released a rare video statement in which he said the probe is a pretext for applying political pressure on the Fed to lower interest rates.
President Donald Trump has been critical of the renovation project, accusing Powell of mismanaging it as the White House has sought to ramp up pressure on the Fed to boost the economy through lower rates.
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the group of central bank leaders wrote. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens we serve.”
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“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. Chair Powell has served with integrity, focused on his mandate and and an unwavering commitment to the public interest,” the statement continued.
“To us, he is a respected colleague who is held in the highest regard by all who have worked with him,” the group of international central bankers added.
The signatories to the statement included European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Reserve Bank of Australia Governor Michele Bullock, and Bank of Canada Governor Tiff Macklem.
Other signatories include the central bank leaders of Sweden, Denmark, Norway, Switzerland, South Korea, Brazil and South Africa – as well as leaders of the Bank for International Settlements. The group noted that additional signatories may be added later.
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Powell said in his video message that he has “deep respect for the rule of law and for accountability in our democracy,” adding that not even the Fed chair is above the law, but added that “this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures has made every effort to keep Congress informed about the renovation project,” he said. “These are pretexts.”
“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 continued. “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.”
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Trump, who appointed Powell as Fed chair during his first term, denied knowledge of the subpoenas in comments to NBC News on Sunday and said in terms of pressuring Powell to cut rates that he “wouldn’t even think of doing it that way.”
“What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got,” Trump said. “He’s hurt a lot of people. I think the public is pressuring him.”
U.S. Attorney for the District of Columbia Jeanine Pirro said Monday that the Fed repeatedly failed to respond to outreach from her office regarding the alleged cost overruns in the renovation project and Powell’s testimony, saying the legal process that prosecutors have undertaken “is not a threat.”
“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach,” Pirro said.
Trump has repeatedly called on Powell to cut interest rates during both of his terms in the White House. The president has also called him a “bonehead” and “fool” and on Dec. 29 accused him of “gross incompetence” in overseeing the renovations, which the president claimed would cost $4 billion.
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The project was initially estimated to cost $1.9 billion in 2019, though the estimated cost rose to nearly $2.5 billion as of 2025 due to “significant increases” in the cost of wood, steel, cement and other construction materials, as well as the cost of remediating asbestos and lead from the building, according to a report by The Wall Street Journal.
Last summer, Powell provided a tour of the Fed’s renovations to Trump and several of his allies who have criticized the Fed chair over both the renovation and monetary policy amid the rate-cutting push.
During a tense exchange in front of the press, Trump claimed the renovation project cost $3.1 billion and handed Powell a document including that information. Powell noted that the figure included the renovation of the McChesney Martin building, which was completed years ago and reopened in 2021. It’s unclear where the president derived his “more than $4 billion” figure.
The Trump administration has also attempted to remove Fed Governor Lisa Cook after Federal Housing Finance Agency Director Bill Pulte submitted a criminal referral accusing her of mortgage fraud, which prompted a DOJ investigation.
Cook has denied wrongdoing and after Trump moved to fire her, citing the referral as cause, sued to remain in her role. A federal judge blocked her removal on the grounds that the president likely violated her due process rights.
The White House appealed the ruling to the Supreme Court, where the case is set to be argued next week.
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