Condemnations grew on Monday after the Trump administration decided to open a criminal investigation into Federal Reserve Chair Jerome Powell, with the defenders of the U.S. central bank pushing back against President Donald Trump's efforts to exert more control over the Fed.
The backlash reflected the overarching stakes in determining the balance of power within the federal government and the path of the U.S. economy at a time of uncertainty about inflation and a slowing job market. This has created a sense among some Republican lawmakers and leading economists that the Trump administration had overstepped the Fed's independence by sending subpoenas.
The criminal investigation β a first for a sitting Fed chair β sparked an unusually robust response from Powell and a full-throated defense from three former Fed chairs, a group of top economic officials and even Republican senators tasked with voting on Trump's eventual pick to replace Powell as Fed chair when his term expires in May.
Global central bank officials β were also said to be working on a statement βto express βsupport for Powell, according to Bloomberg News on Tuesday.
The joint statement, which will be open for all central banks to sign, is expected to be issued under the Bank for International Settlements banner, the report said, adding that it could be issued as early as Tuesday.
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