Global Central Bank Chiefs, Wall Street CEOs Rally Behind Fed Chair Powell After Trump Threat

Last Updated:January 13, 2026, 22:47 IST

Global central bank leaders and Wall Street executives united in support of Jerome Powell after the Trump administration threatened him with indictment.

US Federal Reserve Chair Jerome Powell. (File Photo: AP)

Global central bank leaders and top Wall Street executives voiced rare, coordinated support for Jerome Powell on Tuesday after the Trump administration threatened the Federal Reserve chief with a criminal indictment, an action Powell described as intimidation aimed at pressuring the central bank to cut interest rates.

The show of solidarity underscored Powell’s standing among global policymakers and highlighted the importance of central bank independence to financial markets. It followed pushback on Monday from several Republicans, including members of the Senate Banking Committee, who hold influence over the confirmation of any successor to Powell, whose term ends in May.

Powell disclosed late Sunday that the US Department of Justice had issued subpoenas related to testimony he gave Congress about a $2.5 billion renovation of the Fed’s Washington headquarters. He said the probe was being used as a pretext to pressure the Fed to lower rates, an outcome long sought by Donald Trump.

In a rare joint statement, the heads of 11 of the world’s largest central banks said they stood “in full solidarity" with Powell and the Federal Reserve, stressing that independence from political influence is essential to price and financial stability. Signatories included leaders of the European Central Bank, the Bank of England, the Bank of Canada, and counterparts from Sweden, Denmark, Switzerland, Australia, South Korea, Brazil and France, as well as officials from the Bank for Settlements.

Wall Street executives echoed the concern. Jamie Dimon said the probe was “probably not a great idea," warning it could lift inflation expectations and push interest rates higher over time. Robin Vince cautioned against undermining confidence in the Fed, saying it would risk destabilising bond markets and raising borrowing costs.

Trump renewed his calls on Tuesday for Powell to cut rates “meaningfully" after data showed consumer prices rose 2.7% in December from a year earlier. Traders, however, continued to bet that sticky inflation would keep the Fed on hold until at least June.

Central bankers warned that political pressure on the Fed could erode trust in its inflation mandate, increase market volatility, and weaken the dollar’s role as a global backstop during periods of stress, effects that could ripple across international financial markets.

News world Global Central Bank Chiefs, Wall Street CEOs Rally Behind Fed Chair Powell After Trump Threat

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