Bank of England governor joins protest over US central bank row

The governor of the Bank of England has joined a chorus of opposition to the treatment of his US counterpart following revelations he is facing a criminal inquiry.

Andrew Bailey is among a group of global central bank bosses to sign a statement backing Federal Reserve chair Jerome Powell. He revealed on Sunday that he and the Fed were being threatened with possible Department of Justice (DoJ) charges as part of initial inquiries into spiralling renovation costs.

Money latest: The exact amount pensions and benefits will go up per week from April Mr Powell, who had remained largely tight-lipped over a long-running battle with the Trump administration for control of central bank voting until then, claimed the action was a "pretext" to gain more influence over US monetary policy. There has been cross-party condemnation of his treatment.

He is due to step down in May after serving two terms but there is now doubt over whether Congress will approve any successor nominated by the White House given the latest legal row. Mr Powell attracted further support on Tuesday from a coalition of central bankers through a joint statement.

The bankers, who also include European Central Bank president Christine Lagarde, said they "stand in full solidarity" with the Federal Reserve and its chair. "The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve," the statement read.

"It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. "Chair 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." Mr Bailey has spoken out in defence of US central bank independence before following several financial market wobbles linked to efforts by the White House to force a greater speed of interest rate cuts on the US economy. A Supreme Court hearing is due by the end of the month amid the administration's bid to fire a member of its rate-setting committee, Lisa Cook, who was appointed during the Biden presidency.

Mr Trump, who has previously called for Mr Powell's head before tempering his criticism of the central bank chief, has distanced himself from any role in the US Attorney for Washington's requests for information from Mr Powell. The subpoenas relate to building costs at the Fed buildings, which have exceeded original estimates by hundreds of millions of dollars..