Global central bank leaders have issued a rare joint statement defending Jerome Powell, chair of the Federal Reserve, following the launch of a criminal investigation tied to a 2.5 billion dollar renovation of the central bank’s headquarters in Washington, D.C.

In the statement released Tuesday, central bankers including Christine Lagarde, President of the European Central Bank, and Andrew Bailey, Governor of the Bank of England, expressed full solidarity with Powell and emphasized the importance of central bank independence.

The statement said the independence of central banks is a cornerstone of price, financial and economic stability and must be preserved with respect for democratic accountability and the rule of law. The signatories described Powell as a respected colleague who has served with integrity and an unwavering commitment to the public interest.

Support also came from central bank chiefs across Brazil, Switzerland, Sweden, Denmark, South Korea, Australia and Canada, highlighting growing international concern over political pressure on monetary policy institutions.

The statement follows Powell’s confirmation on Sunday that federal prosecutors had opened a criminal investigation into the renovation project and his related testimony to Congress. Powell linked the probe to ongoing pressure from Donald Trump, who has repeatedly called for faster and deeper interest rate cuts.

In a video statement posted on the Federal Reserve’s official X account, Powell warned that the investigation could have long term implications for the institution’s independence. He said the issue centers on whether the Fed can continue setting interest rates based on economic data and evidence rather than political influence or intimidation.

Market reaction has remained measured so far, but analysts warn that any erosion of central bank independence could undermine investor confidence, weaken financial stability and damage the credibility of U.S. monetary policy.

As the investigation continues, global policymakers appear united in their message that protecting central bank autonomy is essential to maintaining economic stability during a period of heightened political and market uncertainty.

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