Global central bankers rally behind Powell amid Trump probe

Leaders representing 35 international central banks and central banking institutions, including the Luxembourg Central Bank (BCL), have signed a statement in support of US Federal Reserve Chief Jerome Powell.

The Trump administration launched a criminal investigation into Powell over spending on office renovations, which Powell on Sunday called a “pretext” to gain more influence over interest rate policy.

“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the leaders wrote on Monday.

“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 read.

Federal Reserve Chairman Jerome Powell walks between meetings at the Fed on 13 January 2026 in Washington, DC © Photo credit: Getty Images via AFP

“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 added.

The open letter was signed by Christine Lagarde, president of the European Central Bank (ECB), on behalf of the ECB’s Governing Council, its policy-setting body. The governor of Luxembourg’s central bank, Gaston Reinesch, sits on the council, along with the governors of the other euro zone central banks.

The Luxembourg Times understands that all members of the Governing Council, including Reinesch, were consulted before the ECB signed the statement and that the text and Lagarde’s signature fully reflects their views.

Luxembourg’s Central Bank declined to comment for this article beyond pointing to the official statement.

The other signatories were the heads of the central banks of Australia, Brazil, Canada, Denmark, New Zealand, Norway, South Africa, Sweden, Switzerland and the UK, along with leaders of the Bank for International Settlements, which is sometimes called the central bank for central bankers.