Central banks from multiple countries plan to unite in support of Powell, supporting the independence of the Federal Reserve.

According to an informed source, after the Trump administration significantly escalated pressure on the Federal Reserve, central bank officials from multiple countries around the world are preparing a joint statement in support of Federal Reserve Chairman Powell. The source stated that this joint statement is expected to be released in the name of the Bank for International Settlements (BIS) and open for signing by all central banks. Due to the need for coordination among central bank governors in different time zones regarding the wording, the statement may be released as early as Tuesday. Reportedly, informed officials stated that the U.S. Attorney's Office for the District of Columbia has initiated a criminal investigation into Powell, involving the Federal Reserve's renovation of its Washington headquarters building, and whether Powell lied to Congress about the scope of the project. Informed officials disclosed that this investigation includes an analysis of Powell's public statements and a review of expenditure records, and received approval from U.S. Attorney for the District of Columbia, Jennie Pierson, in November last year. Subsequently, Powell confirmed that the U.S. Department of Justice issued a subpoena to the Federal Reserve on January 9, threatening criminal charges regarding Powell's testimony before the Senate Banking Committee, which partly involved a long-standing historic Federal Reserve office building renovation project. Powell stated that this new threat is not related to last June's testimony or the Federal Reserve office renovation project, and is not related to congressional oversight functions, but rather excuses. The actual reason for the threat of criminal charges is the Federal Reserve's setting of interest rates based on the best assessment of the public interest, and not following the preferences of U.S. President Trump. Powell pointed out that this concerns whether the Federal Reserve can continue to set rates based on evidence and economic conditions, or whether monetary policy will be influenced by political pressure or coercion. Since becoming U.S. President for the second time in January last year, Trump has been urging the Federal Reserve to cut interest rates, hoping to boost the economy and reduce government borrowing costs. Dissatisfied with the Federal Reserve's failure to actively lower rates, Trump has repeatedly called for Powell to resign. Now, the unprecedented legal action by the Trump administration threatens has heightened concerns among observers that political pressure may weaken the independence of the Federal Reserve, and has raised alertness to the long-term risks of monetary policy no longer being centered on inflation and economic growth targets, but instead being subject to political demands. As a pillar of the global financial system, the Federal Reserve and the U.S. dollar play a crucial anchoring role, which means that both verbal pressure and legal threats have global implications. Bank of Canada Governor Tiff Macklem issued a statement on Monday expressing "full support" for Powell, calling him the "epitome of the highest standards of public service." Macklem stated in a statement, "Chairman Powell has done an outstanding job in extremely difficult circumstances, guiding the Federal Reserve to make monetary policy decisions based on evidence rather than political factors." Other central bank governors, including European Central Bank President Christine Lagarde, have also emphasized the importance of the independence of monetary policy and have defended and praised Powell. Jimmy Jean, Chief Economist at Desjardins Group, analyzed that Macklem's move may be to defend the authority of major central banks in response to the increasing public skepticism towards central banks in the current global populist wave. He stated, "In my view, this is a specific response to Powell's rare statement yesterday. The message it conveys is very clear - once the Federal Reserve is attacked, all central banks around the world will face threats. This may also be an effort to maintain the credibility of the central bank system and reverse some negative perceptions of central banks among anti-establishment groups." It is worth noting that during an interview last Sunday, Trump denied knowledge of the Department of Justice's investigation into the Federal Reserve. White House Press Secretary Levi on Monday told reporters that Trump did not order the investigation, while also defending Trump's right to criticize the Federal Reserve.