The world's most powerful central bankers took the extraordinary step this week of publicly rallying behind Federal Reserve Chair Jerome Powell, issuing a joint statement that stands as an unprecedented rebuke of the Trump administration's escalating pressure campaign against the Federal Reserve.

The statement, signed by leaders of eleven central banks including the European Central Bank, Bank of England, and Reserve Bank of Australia, declared that Powell "has served with integrity, focused on his mandate and an unwavering commitment to the public interest." It came days after the Justice Department revealed it had served the Fed with grand jury subpoenas and threatened criminal charges against the chair.

A Historic Show of Solidarity

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

ECB President Christine Lagarde was the driving force behind organizing the response, with much of the diplomatic coordination handled by Pablo Hernandez de Cos, general manager of the Bank for International Settlements. The signatories span four continents, representing central banks that collectively oversee economies worth tens of trillions of dollars.

"He is a respected colleague who is held in the highest regard by all who have worked with him."

— Joint Statement of International Central Bankers, January 13, 2026

Central Banks Signing the Statement

  • European Central Bank – Christine Lagarde (representing 21 eurozone central banks)
  • Bank of England – Andrew Bailey
  • Reserve Bank of Australia – Michele Bullock
  • Bank of Canada – Tiff Macklem
  • Bank of Korea – Chang Yong Rhee
  • Central Bank of Brazil – Gabriel Galipolo
  • Swiss National Bank – Martin Schlegel
  • Sveriges Riksbank (Sweden) – Erik Thedeen
  • Danmarks Nationalbank (Denmark) – Christian Kettel Thomsen

Notably absent was the Bank of Japan, whose spokesman said the institution "refrained from commenting on other central banks' actions."

Powell's Defiant Stand

The international support came after Powell broke his customary silence on January 11, revealing that federal prosecutors had launched what he characterized as a pretextual investigation into the $2.5 billion renovation of the Federal Reserve's Washington headquarters.

"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell said in his statement. "Those 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 directly linked the investigation to his refusal to cut interest rates according to the administration's wishes, calling it "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."

Republican Senators Break with White House

In a significant political development, several Republican senators joined the criticism of the administration's approach. Senator Thom Tillis of North Carolina, a Banking Committee member, announced he would oppose any Fed Board nominees "until this legal matter is fully resolved."

"If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," Tillis said.

Alaska Senator Lisa Murkowski backed her colleague, stating: "After speaking with Chair Powell this morning, it's clear the administration's investigation is nothing more than an attempt at coercion."

Former Fed Chairs Add Their Voice

Every living former chair of the Federal Reserve—including Ben Bernanke, Janet Yellen, and Alan Greenspan—signed onto a separate statement calling the DOJ subpoenas "an unprecedented attempt to use prosecutorial attacks to undermine that independence." They compared the tactics to "how monetary policy is made in emerging markets with weak institutions."

Market Implications

The confrontation has injected fresh uncertainty into financial markets at a delicate moment. With the Fed widely expected to hold rates steady at its January 27-28 meeting, investors are increasingly focused on what comes next—both for monetary policy and for Powell's tenure, which expires in May.

Trump has made no secret of his intention to replace Powell, with former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett reported as leading candidates. The question now is whether international pressure and Republican defections will temper the administration's approach—or harden its resolve.

For global investors, the stakes could hardly be higher. The Federal Reserve's independence has been a pillar of the dollar's status as the world's reserve currency and a foundation of global financial stability for decades. Any perception that American monetary policy is becoming subject to political direction could trigger profound shifts in how international capital flows are allocated.

The international central banking community has now made clear where it stands. Whether that matters in the halls of the Justice Department remains to be seen.