Powell Gets Global Backing: In a rare move, the heads of ten monetary authorities, including the Bank for International Settlements (BIS), expressed solidarity with US Federal Reserve Chairman Jerome Powell after he stated that US President Donald Trump was putting political pressure on him to lower interest rates.
We stand in full solidarity with the Federal Reserve System and its Chairman, Jerome H. Powell. The independence of central banks is the foundation of price, financial, and economic stability, serving the interests of the citizens we serve. Therefore, it is crucial to uphold that independence with full respect for the rule of law and democratic accountability.
Chairman Powell has acted with integrity, focused on his mandate, and demonstrated an unwavering commitment to the public interest. “For us, he is a respected colleague, highly regarded by all who have worked with him,” the group of central bankers said in a public statement published on the Bank of England’s website.
The group includes European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Swedish Central Bank Governor Erik Thedéen, Danish Central Bank head Christian Kettel Thomsen, and Martin Schlegel of the Swiss National Bank.
Also included are Michele Bullock of the Reserve Bank of Australia, Bank of Canada Governor Tiff Macklem, Bank of Korea Governor Chang Yong Rhee, and Gabriel Galípolo, head of the Central Bank of Brazil. The list also included François Villeroy de Galhau and Pablo Hernández de Cos, who are the Chairman and General Manager of the BIS, respectively.
The central bank governors showed solidarity, emphasizing the independence of central banks. Interestingly, the banking regulators of the ten largest economies by current USD prices, including the EU, participated in this initiative, with the exception of India, China, and the Russian Federation. The Reserve Bank of India (RBI) did not respond to questions regarding its absence from the statement by press time.
This move comes after Mr. Powell said he had received threats of criminal charges related to cost overruns in a renovation project at the Federal Reserve, but that the real motive was to pressure the central bank to lower interest rates further.
According to the December monetary policy statement, effective interest rates are 3.64% after a 0.25% cut last month. Most global banks and experts expect the Fed to keep rates steady at its next meeting, given the strong labor market conditions and the lack of an immediate need for a cut.
However, Mr. Trump has been pressuring the Fed chairman to implement deeper interest rate cuts, which would lower the cost of financing government deficits – that is, spending exceeding revenue, which governments finance by borrowing. Mr. Powell said in a video released on Sunday (January 11, 2026), “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what is in the public interest, rather than what the president prefers. This is about whether the Fed will be able to continue setting interest rates based on the evidence and economic conditions – or whether monetary policy will instead be determined by political pressure or threats.”
(With agency inputs)