Jan. 13 (UPI) — The heads of several central banks from around the world said Tuesday that Jerome Powell, “a respected colleague,” should have full independence in his role as chairman of the U.S. Federal Reserve as it faces a Justice Department investigation.
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” said a statement issued by the European Central Bank.
“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 central bankers’ praise for Powell came as President Donald Trump launched more criticisms at him Tuesday morning, again taking him to task for being over budget on a renovation of buildings at the Fed’s headquarters in Washington, D.C.
“So, he either is incompetent or he’s crooked,” Trump said, according to CNBC. “I don’t know what he is. But he does a — certainly he doesn’t do a very good job.”
Powell revealed Sunday night he received a subpoena from the Justice Department threatening him with criminal charges over testimony he gave to Congress last year about the cost of renovating historic Federal Reserve buildings. He accused the Trump administration of using the testimony as a pretext to punish him and the Fed for failing to set federal interest rates based on Trump’s preferences.
The Justice Department investigation has sparked condemnation by former Federal Reserve heads and members of Congress. Sen. Thom Tillis, R-N.C., said he would vote against any of Trump’s nominees to replace Powell “until this legal matter is fully resolved.”
Sen. Lisa Murkowski, R-Alaska, on Monday called on Congress to investigate the Justice Department for its probe, which she described as “attempt at coercion” by Trump.
“The stakes are too high to look the other way: If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer,” she said.
Trump has said he plans to replace Powell when his four-year term is up later this year. The president has repeatedly taken Powell to task for not cutting interest rates as frequently and by as much as he wants. Trump appointed Powell to his first four-year term in 2018, and former President Joe Biden renewed his position in 2022.
Trump threatened to sue Powell in August over the planned renovations, citing the “horrible and grossly incompetent job he has done in managing the construction of the Fed Buildings.” The president said the cost of the renovations exceeded $3 billion, but all the project needed was a $50 million “fix-up.”
Among those who signed the statement from the group of central banks were: ECB President Christine Lagarde; Andrew Bailey (England); Erik Thedéen (Sweden); Christian Kettel Thomsen (Denmark); Martin Schlegel (Switzerland); Ida Wolden Bache (Norway); Michele Bullock (Australia); Tiff Macklem (Canada); Chang Yong Rhee (South Korea); Gabriel Galípolo (Brazil); Lesetja Kganyago (South Africa); François Villeroy de Galhau, chair of the board of directors of the Bank for International Settlements; and Pablo Hernández de Cos, general manager of the Bank for International Settlements.
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