Fed Chair Jerome Powell Draws Support From Global Central Bankers Amid Trump DOJ Scrutiny

• The 11 bankers stressed the importance of the independence of central banks to the country’s economy, calling it a “cornerstone” of price, financial, and economic stability in the interests of the citizens they serve.
• They called for preserving this independence by respecting the rule of law and maintaining democratic accountability.
• At the heart of the DOJ’s criminal investigation into Fed Chair Powell is a $2.5 billion renovation of the Fed’s Eccles Building.

Jerome Powell found support from central bankers worldwide after the U.S. Department of Justice launched a criminal investigation into the Federal Reserve Chair.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” said 11 central bankers in a joint statement.

These bankers include Christine Lagarde, President of the European Central Bank, Andrew Bailey, Governor of the Bank of England, and Erik Thedéen, Governor of Sveriges Riksbank, among others.

What Did The Bankers Say?

The 11 bankers stressed the importance of the independence of central banks to the country’s economy, calling it a “cornerstone” of price, financial, and economic stability in the interests of the citizens they serve.

They called for preserving this independence by respecting the rule of law and maintaining democratic accountability.

“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him,” the joint statement said.

What Is Powell Being Investigated For?

At the heart of the DOJ’s criminal investigation into Fed Chair Powell is a $2.5 billion renovation of the Fed’s Eccles Building.

In July 2025, Rep. Anna Paulina Luna announced that she had referred Powell to the DOJ for potential perjury connected to his testimony about the Fed headquarters renovation project.

Reacting to the probe, Powell warned that its outcome would determine whether the central bank could set monetary policy going forward, or whether it would instead be directed by political pressure or intimidation.

“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,” he said.

In an interview with NBC News on Sunday, President Donald Trump denied knowledge of the investigation. “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.

Fed Chair front-runner and White House National Economic Council Director Kevin Hassett on Monday said that the renovation plans for the Fed building look inconsistent with Powell’s testimony, while holding himself back from giving a definitive opinion about whether the Fed Chair committed perjury.

“I hope everything turns out okay with Jay,” he said.

Meanwhile, U.S. equities declined in Tuesday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.14%, the Invesco QQQ Trust ETF (QQQ) fell 0.26%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.1%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) edged up by 0.01% at the time of writing.

Also See: Wharton’s Jeremy Siegel Rejects Stagflation Fears, Stays Overweight US Equities: ‘This Is Not A Late-Cycle Stagnation Story’

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