• Global central bankers express support for Jerome Powell amid Trump administration's threats.
• Eleven bank leaders emphasize the necessity of central bank independence.
• The investigation into Powell relates to a renovation project, not his monetary policy decisions.
• Critics warn that political pressure could destabilize financial markets.
• Powell describes the indictment threat as a "pretext" to influence interest rate policies.

On January 13, central bankers from ten countries released a joint statement supporting U.S. Federal Reserve Chair Jerome Powell following the Trump administration's threats of a criminal indictment against him. The statement emphasized their full solidarity with the Federal Reserve System and highlighted the crucial role of independent central banking in ensuring financial and economic stability, as shown by statements from the Bank of England and the European Central Bank, among others, according to Reuters and BBC.

The current investigation revolves around Powell's testimony regarding the renovation costs of the Federal Reserve's headquarters. However, Powell has publicly declared that these legal threats are merely pretexts for political influence over interest rate decisions. His colleagues stated, "Chair Powell has served with integrity" and underlined the necessity to preserve the independence of central banks for the benefit of citizens, according to Le Monde and CBS News.

As the global economy remains sensitive to policy changes, critics warn that any erosion of the Federal Reserve's independence could lead to increased inflation and market volatility. The backing from international central bankers highlights significant concern over political pressures affecting central bank functions, as noted in the opinions of multiple former Fed chairs and Treasury secretaries who have condemned the Trump administration's actions, according to Reuters and Le Monde.