Central bankers back Jerome Powell as DOJ launches probe
Top central bankers—11 senior central bank leaders—are standing with US Fed Chair Jerome Powell after the Department of Justice (DOJ) began investigating his Senate testimony about a $2.5 billion renovation at the Federal Reserve's headquarters.
The DOJ is looking into whether Powell misled lawmakers about features like rooftop terraces and private elevators in the new building.
Why does it matter?
Powell says he did nothing wrong and calls the probe politically motivated, suggesting it's pressure to sway interest rate decisions.
Central bank leaders—including those from the UK and Europe—have issued a joint statement showing "full solidarity" with him, worried this could threaten Fed independence.
Former Fed Chairs, like Janet Yellen, also criticized the investigation, while some US senators are now blocking new Fed appointments until things get resolved.