Bank of England governor Andrew Bailey has joined global central bank bosses in offering “solidarity” to US counterpart Jerome Powell as he faces the threat of a criminal investigation under the Trump administration.
The statement of support is signed by 11 leaders, including European Central Bank president Christine Lagarde.
The heads of central banks in Sweden, Denmark, Switzerland, Australia, Canada, South Korea and Brazil have also signed their names.
Its publication comes after Mr Powell said the Federal Reserve was being threatened with a criminal indictment related to his testimony about renovation projects at the central bank’s office buildings.
The bankers said they “stand in full solidarity” with the Federal Reserve and its chairman Mr Powell.
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” the statement reads.
“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest.
“To us, he is a respected colleague who is held in the highest regard by all who have worked with him.”
The statement marks a significant showing of support for Mr Powell, who suggested that the threat of criminal charges undermines the independence of the Fed.
He said in a video statement that the “unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure”.
President Donald Trump has repeatedly criticised Mr Powell and the Fed on its decisions not to cut the country’s interest rates as quickly as he would prefer.
