ECB and Global Banks Stand With Fed Amid Political Pressure

The European Central Bank (ECB) has come out strongly in support of U.S. Federal Reserve Chair Jerome Powell. In a post shared on X, the ECB said it stands in “full solidarity” with the Federal Reserve and its leadership. The message was backed by a joint statement from 11 major central banks around the world.

The ECB and other European and international central banks stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.

The independence of central banks is in the interest of the people we serve. pic.twitter.com/j8anBP2dpB

— European Central Bank (@ecb) January 13, 2026

The statement comes at a tense moment. The Trump administration has increased pressure on the Federal Reserve over interest rate policy. Reports from U.S. media say the Department of Justice has opened a criminal probe linked to renovation costs at the Fed’s headquarters. 

Many see this as a way to put pressure on Powell over monetary policy. Powell has pushed back. In recent comments, he called the move “intimidation” and said it has more to do with politics than proper oversight.

Global Central Banks Show Rare Unity

The joint statement was signed by top central bank leaders, including ECB President Christine Lagarde and Bank of England Governor Andrew Bailey. The message was short but strong. It said: “The ECB and other European and international central banks stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell. The independence of central banks is in the interest of the people we serve.” 

This kind of public show of support is rare. Central banks usually stay quiet on political matters. But leaders felt the need to speak out as concerns grew about political influence over U.S. monetary policy.

Why Fed Independence Matters

Central banks are meant to operate free of political control. Their main duty is to control inflation, protect price stability and keep the economy intact. They achieve this by setting interest rates based on evidence rather than politics. When governments try to influence these decisions, it can cause long term damage. History shows that countries with weak central bank independence often struggle with high inflation and weak currencies.

The statement from global central banks makes this clear. In fact, it says independence is not for bankers; rather, it is for the public. As a result, stable money helps families plan, save, and spend with confidence. Furthermore, Christine Lagarde and Andrew Bailey stressed that Jerome Powell has acted with integrity. Also, it has always worked in the public interest.

Public Reaction Is Divided

The statement quickly went viral on X. In response, some users praised the ECB and other banks for standing up for democratic institutions. However, others were more critical. For example, some people said central banks care more about investors than everyday citizens. Furthermore, others pointed to high inflation in recent years and questioned whether central banks deserve full trust. Meanwhile, markets are also watching closely because any threat to Federal Reserve independence could affect the dollar, stocks, and global trade. The Fed plays a key role in the world economy.

A Bigger Global Issue

The Federal Reserve is the world’s most powerful central bank. The US dollar is the worldwide reserve currency. What happens in Washington doesn’t stay in Washington. If political pressure weakens the Fed, it could shake trust in the global financial system. That is why global central banks are speaking up now. For them, this is not just about Jerome Powell. It is about protecting the idea that money policy should serve people, not politics.