Overview
- Leaders from major central banks and BIS officials issued a public declaration of “total solidarity” with Fed Chair Jerome Powell after the U.S. government announced an investigation and threatened criminal charges.
- Signatories include ECB President Christine Lagarde, Bank of England Governor Andrew Bailey, and counterparts from Canada, Australia, Switzerland, Sweden, Denmark, Brazil, South Korea, and Norway, along with BIS leadership.
- The Bank of Japan did not appear on the initial list of signatories, with the statement noting additional names could be added later.
- Powell called the probe a “pretext” to strip the Fed’s autonomy and pledged to set policy without fear or political favoritism; reports say the dispute ties back to his June testimony on Fed headquarters renovation costs.
- President Trump renewed public attacks on Powell, saying he hopes Powell leaves soon and accusing him of overspending, while economists warn politicization could erode anti‑inflation credibility and lift U.S. borrowing costs.