![\"Andrew](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2024\/10\/Andrew-Bailey-in-committee.png\")
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.<\/p>\n
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\u00a0inquiries into spiralling renovation costs.<\/p>\n
He claimed the action was a \u201cpretext\u201d to gain more influence over US monetary policy amid a running battle with President Trump over management of interest rates.<\/p>\n
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.<\/p>\n
In a joint statement issued this morning, they said: \u201cWe stand in full solidarity with the Federal Reserve System and its Chair Jerome H Powell.<\/p>\n
\u201cThe independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. <\/p>\n
\u201cIt is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.<\/p>\n
\u201cChair 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.\u201d<\/p>\n
Mr Bailey has previously defended US central bank independence against efforts by the White House to force a faster pace of interest rate cuts.<\/p>\n
The subpoenas relate to building costs at the Fed buildings, which have exceeded original estimates by hundreds of millions of dollars.<\/p>\n
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