Bank of England governor Andrew Bailey has joined his counterparts at other central banks condemning the treatment of the Federal Reserve chair Jerome Powell who is facing a criminal inquiry.
Mr Powell revealed on at the weekend that he and the Fed were being threatened with possible Department of Justice (DoJ) charges as part of initial inquiries into spiralling renovation costs.
He claimed the action was a “pretext” to gain more influence over US monetary policy amid a running battle with President Trump over management of interest rates.
Mr Powell, who is due to step down in May after serving two terms, has garnered cross-party support in the US and this has been backed by a coalition of bankers who include European Central Bank president Christine Lagarde and others around the world.
In a joint statement issued this morning, they said: “We stand in full solidarity with the Federal Reserve System and its Chair Jerome H Powell.
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.
“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.”
Mr Bailey has previously defended US central bank independence against efforts by the White House to force a faster pace of interest rate cuts.
The subpoenas relate to building costs at the Fed buildings, which have exceeded original estimates by hundreds of millions of dollars.
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