Global central bankers launch unprecedented international intervention to defend Fed Chair Jerome Powell against Trump administration criminal threats, exposing a dangerous power grab that could destroy American economic stability.
Story Highlights
- Eleven world central bank leaders issue rare joint statement defending Powell against Trump’s Justice Department investigation
- International financial community warns that politicizing the Fed threatens global economic stability
- Powell calls administration threats “pretexts” for seizing control of monetary policy
- Economists predict higher Treasury yields and inflation if Fed independence collapses
International Banking Coalition Defends American Monetary Independence
Eleven central bank leaders from major economies issued an extraordinary joint statement on January 13, 2026, declaring “full solidarity” with Federal Reserve Chair Jerome Powell amid escalating political pressure from the Trump administration. The coordinated defense includes leaders from the European Central Bank, Bank of England, and central banks across Sweden, Denmark, Switzerland, Australia, Canada, South Korea, and Brazil. This unprecedented international intervention highlights the global stakes involved when America’s monetary policy independence faces political attack.
Justice Department Investigation Targets Fed Chair Over Building Costs
The Trump administration launched a Justice Department investigation into Powell, threatening criminal charges over his congressional testimony regarding Federal Reserve building renovation costs. Powell characterized these threats as “pretexts” in what he views as a campaign to seize control of interest rate policy. The dispute ostensibly centers on administrative testimony about construction expenses, but reflects deeper disagreement over the Fed’s pace of rate cuts. Trump has repeatedly criticized Powell for not moving faster to reduce interest rates, abandoning Powell’s initial strategy of ignoring the relentless political pressure.
Economic Stability Threatened by Monetary Policy Politicization
Economists warn that a politicized Federal Reserve capitulating to presidential demands will damage its credibility as an inflation fighter and force investors to demand higher yields on U.S. Treasury bonds. The international statement emphasizes that “the independence of central banks is a cornerstone of price, financial and economic stability,” noting Powell “has served with integrity, focused on his mandate and an unwavering commitment to the public interest.” Central bank independence has been a foundational principle of modern monetary policy since the late 20th century, designed to prevent inflation by insulating monetary decisions from short-term political pressures.
The coordinated international response represents an attempt by the global financial establishment to constrain executive overreach through peer pressure and reputational concerns. If the world’s largest central bank loses independence, the consequences could cascade across international financial markets, affecting global economic stability. American citizens face potential inflation consequences if the Fed loses credibility, while investors may demand higher rates before investing in U.S. government debt, ultimately increasing borrowing costs for taxpayers.
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World central bankers express ‘full solidarity’ with Fed’s Powell
International central bankers on the statement by Federal Reserve Chair Powell on 11 January 2026
