Jerome Powell Secures Global Central Bank Backing During DOJ Criminal Investigation

A group of global central bank leaders issued a joint statement on Tuesday expressing their support for Federal Reserve Chair Jerome Powell, who is currently facing a criminal investigation initiated by the Trump administration’s Department of Justice.

On Sunday, Powell revealed that the DOJ had served grand jury subpoenas to the Federal Reserve on Friday. This investigation pertains to perjury allegations stemming from his testimony before the Senate Banking Committee last summer regarding the Fed’s renovation project. In a rare video statement, Powell asserted that the probe is merely a pretext for exerting political pressure on the Fed to lower interest rates.

President Donald Trump has been vocal in his criticism of the renovation project, accusing Powell of mismanagement while the White House has intensified its pressure on the Fed to stimulate the economy through reduced rates.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the central bank leaders stated. “The independence of central banks is a cornerstone of price, financial, and economic stability in the interest of the citizens we serve.”

FORMER FED CHAIRS, TREASURY SECRETARIES DEFEND JEROME POWELL AMID DOJ’S CRIMINAL PROBE

Federal Reserve Chair Jerome Powell is facing an investigation from the Trump administration’s Justice Department. (Chip Somodevilla/Getty Images)

“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 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 included central bank leaders from 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.

PIRRO SAYS FEDERAL RESERVE IGNORED US ATTORNEY OUTREACH ON POWELL TESTIMONY, ALLEGED COST OVERRUNS

Global central bank leaders including Bank of England Governor Andrew Bailey (left) and European Central Bank President Christine Lagarde (second from left) signed the letter in support of Powell. (David Paul Morris/Bloomberg via Getty Images)

In his video message, Powell emphasized his “deep respect for the rule of law and for accountability in our democracy,” asserting that not even the Fed chair is above the law. However, he cautioned 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 has made every effort to keep Congress informed about the renovation project,” he stated. “These are pretexts.”

Powell further explained that the threat of criminal charges arises from the Federal Reserve’s decision to set interest rates based on its best assessment of public service, rather than succumbing to the President’s preferences. “This is about whether the Fed will continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be directed by political pressure or intimidation,” he added.

TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY

Powell gave Trump and his allies a tour of the Federal Reserve headquarters renovations this summer. (Kent Nishimura/Reuters)

Trump, who appointed Powell as Fed chair during his first term, denied any knowledge of the subpoenas in comments to NBC News on Sunday. He stated that the only pressure Powell should feel is from the public, asserting, “What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got. He’s hurt a lot of people. I think the public is pressuring him.”

U.S. Attorney for the District of Columbia Jeanine Pirro stated on Monday that the Fed had repeatedly failed to respond to outreach from her office regarding the alleged cost overruns in the renovation project and Powell’s testimony. She emphasized that the legal process undertaken by prosecutors “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 remarked.

Trump has consistently urged Powell to cut interest rates throughout both of his terms in office, labeling him a “bonehead” and “fool.” On December 29, he accused Powell of “gross incompetence” in overseeing the renovations, claiming the costs would reach $4 billion.

TRUMP CALLS FED CHAIR POWELL A ‘KNUCKLEHEAD,’ SAYS INTEREST RATES SHOULD BE BELOW 1%

Trump nominated Powell as Fed chair in 2017, and he has remained in the role since 2018 after then-President Joe Biden reappointed him four years ago. (Saul Loeb/AFP via Getty Images)

The renovation project, initially estimated to cost $1.9 billion in 2019, has seen its projected costs rise to nearly $2.5 billion as of 2025. This increase is attributed to “significant increases” in the costs of wood, steel, cement, and other construction materials, as well as the expenses related to 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 containing that information. Powell clarified that the figure included the renovation of the McChesney Martin building, which was completed years ago and reopened in 2021. The source of Trump’s claim of “more than $4 billion” remains unclear.

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, prompting a DOJ investigation.

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Cook has denied wrongdoing and, after Trump moved to fire her, sued to retain her position. A federal judge blocked her removal, citing likely violations of her due process rights. The White House has appealed this ruling to the Supreme Court, where the case is set to be argued next week.

A group of global central bank leaders issued a joint statement on Tuesday expressing their support for Federal Reserve Chair Jerome Powell, who is currently facing a criminal investigation initiated by the Trump administration’s Department of Justice.

On Sunday, Powell revealed that the DOJ had served grand jury subpoenas to the Federal Reserve on Friday. This investigation pertains to perjury allegations stemming from his testimony before the Senate Banking Committee last summer regarding the Fed’s renovation project. In a rare video statement, Powell asserted that the probe is merely a pretext for exerting political pressure on the Fed to lower interest rates.

President Donald Trump has been vocal in his criticism of the renovation project, accusing Powell of mismanagement while the White House has intensified its pressure on the Fed to stimulate the economy through reduced rates.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the central bank leaders stated. “The independence of central banks is a cornerstone of price, financial, and economic stability in the interest of the citizens we serve.”

FORMER FED CHAIRS, TREASURY SECRETARIES DEFEND JEROME POWELL AMID DOJ’S CRIMINAL PROBE

Federal Reserve Chair Jerome Powell is facing an investigation from the Trump administration’s Justice Department. (Chip Somodevilla/Getty Images)

“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 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 included central bank leaders from 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.

PIRRO SAYS FEDERAL RESERVE IGNORED US ATTORNEY OUTREACH ON POWELL TESTIMONY, ALLEGED COST OVERRUNS

Global central bank leaders including Bank of England Governor Andrew Bailey (left) and European Central Bank President Christine Lagarde (second from left) signed the letter in support of Powell. (David Paul Morris/Bloomberg via Getty Images)

In his video message, Powell emphasized his “deep respect for the rule of law and for accountability in our democracy,” asserting that not even the Fed chair is above the law. However, he cautioned 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 has made every effort to keep Congress informed about the renovation project,” he stated. “These are pretexts.”

Powell further explained that the threat of criminal charges arises from the Federal Reserve’s decision to set interest rates based on its best assessment of public service, rather than succumbing to the President’s preferences. “This is about whether the Fed will continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be directed by political pressure or intimidation,” he added.

TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY

Powell gave Trump and his allies a tour of the Federal Reserve headquarters renovations this summer. (Kent Nishimura/Reuters)

Trump, who appointed Powell as Fed chair during his first term, denied any knowledge of the subpoenas in comments to NBC News on Sunday. He stated that the only pressure Powell should feel is from the public, asserting, “What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got. He’s hurt a lot of people. I think the public is pressuring him.”

U.S. Attorney for the District of Columbia Jeanine Pirro stated on Monday that the Fed had repeatedly failed to respond to outreach from her office regarding the alleged cost overruns in the renovation project and Powell’s testimony. She emphasized that the legal process undertaken by prosecutors “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 remarked.

Trump has consistently urged Powell to cut interest rates throughout both of his terms in office, labeling him a “bonehead” and “fool.” On December 29, he accused Powell of “gross incompetence” in overseeing the renovations, claiming the costs would reach $4 billion.

TRUMP CALLS FED CHAIR POWELL A ‘KNUCKLEHEAD,’ SAYS INTEREST RATES SHOULD BE BELOW 1%

Trump nominated Powell as Fed chair in 2017, and he has remained in the role since 2018 after then-President Joe Biden reappointed him four years ago. (Saul Loeb/AFP via Getty Images)

The renovation project, initially estimated to cost $1.9 billion in 2019, has seen its projected costs rise to nearly $2.5 billion as of 2025. This increase is attributed to “significant increases” in the costs of wood, steel, cement, and other construction materials, as well as the expenses related to 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 containing that information. Powell clarified that the figure included the renovation of the McChesney Martin building, which was completed years ago and reopened in 2021. The source of Trump’s claim of “more than $4 billion” remains unclear.

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, prompting a DOJ investigation.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Cook has denied wrongdoing and, after Trump moved to fire her, sued to retain her position. A federal judge blocked her removal, citing likely violations of her due process rights. The White House has appealed this ruling to the Supreme Court, where the case is set to be argued next week.