• Global central bankers issue statement backing Fed Chair Jerome Powell amidst DOJ investigation.
• They emphasize the importance of independence for central banks in maintaining economic stability.
• Powell's critics, including President Trump, have triggered significant international concern.
• The statement includes signatures from the Bank of England, ECB, and other major banks.
• Economists warn that political pressure could undermine the Fed’s credibility.

Leaders from eleven major central banks, including the European Central Bank and the Bank of England, have issued a united statement supporting U.S. Federal Reserve Chair Jerome Powell following threats of a criminal investigation from President Trump's administration. The joint statement asserted, "We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell," emphasizing the necessity of maintaining central bank independence for economic stability, according to Reuters and Reuters.

The statement from global central bankers describes Powell as having "served with integrity" and stresses that political influence over central banking could erode public trust, leading to increased inflation and financial instability. This situation arises amidst a Department of Justice investigation tied to Powell's testimony about a renovation project at the Fed, which Powell claims is a "pretext" for political pressure to shape interest rate policy, reports BBC and Le Monde.

Furthermore, the collective stance reflects serious concerns regarding the risk of a politicized Federal Reserve, which economists warn could diminish the Fed’s ability to act effectively against inflation. Such pressures can significantly impact not only the U.S. economy but also global markets since the Fed's decisions affect the U.S. dollar's performance and international financial relations, according to CBS News and Los Angeles Times.