Jerome Powell Support 2026: The global financial world is witnessing an unprecedented showdown. In a rare display of international unity, the heads of the world’s major central banks have issued a joint statement of “full solidarity” with US Federal Reserve Chair Jerome Powell. This move comes as a direct response to the Trump administration’s recent threats of a criminal indictment against Powell, marking a critical moment for the future of global economic stability.
The Core Conflict – Why is Jerome Powell Under Fire?
The tension between the White House and the Federal Reserve reached a breaking point on January 11, 2026, when the US Department of Justice (DOJ) served the Fed with grand jury subpoenas.
The Renovation Pretext
The official investigation focuses on a $2.5 billion renovation of the Federal Reserve’s headquarters in Washington, D.C. However, Jerome Powell has publicly labeled these charges as a “pretext.” According to Powell, the real goal is to use the threat of criminal prosecution to influence the Fed’s decisions on interest rates—a move that would destroy the bank’s traditional independence.
A Wall of Global Solidarity
On Tuesday, January 13, 2026, the global banking community sent a clear message to Washington. A joint statement, coordinated by the Bank for International Settlements (BIS), was signed by the leaders of over 10 major central banks.
Who Are the Key Signatories?
The list of supporters includes some of the most influential figures in finance:
Christine Lagarde (European Central Bank)
Andrew Bailey (Bank of England)
Michele Bullock (Reserve Bank of Australia)
Tiff Macklem (Bank of Canada) Other signatories include central bank chiefs from Brazil, South Korea, Switzerland, and Norway. They collectively stated that “the independence of central banks is a cornerstone of price and financial stability.”
The High Stakes for the Global Economy
This conflict is not just a political drama; it has real-world consequences for everyday citizens. If the Federal Reserve’s independence is compromised, it could lead to:
Inflationary Risks: Politicians often prefer lower interest rates to boost the economy in the short term, which can cause long-term inflation.
Market Volatility: The US Dollar’s credibility depends on a non-political Federal Reserve. Any shift could cause global currency markets to spiral.
Loss of Investor Trust: Major banks like JP Morgan have already warned that attacking Powell could inadvertently push interest rates higher.
As reported by The Guardian, this level of international intervention in US domestic policy is virtually unheard of in modern history.
Conclusion: What Happens Next?
Jerome Powell has vowed to complete his term, which ends in May 2026, stating he will lead the Fed “without political fear or favor.” While the DOJ continues its probe, the overwhelming support from global peers has strengthened Powell’s position. The coming months will determine whether the world’s most powerful central bank can remain truly independent.
For more details on the DOJ’s investigation, you can read the full report on ABC News Australia.
Frequently Asked Questions (FAQs)
- Is the news about Jerome Powell’s indictment real?
Yes, it is true that the DOJ has issued subpoenas and threatened a criminal indictment against Jerome Powell as of January 2026, primarily over his testimony regarding building renovations. - Why are other central banks supporting him?
Global central bankers believe that if the US Fed loses its independence to political pressure, it will set a dangerous precedent that could destabilize the entire global financial system. - Will Jerome Powell resign?
As of now, Jerome Powell has stated he has no intention of resigning and will continue to serve his mandate with integrity until his term ends. - What is the “Renovation” issue?
The DOJ is investigating whether the Fed misled Congress about the costs of its headquarters renovation, which allegedly went billions over budget. Powell claims this is being used as a political weapon.
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