Bank of Canada joins central banks in backing U.S. Fed amid DOJ probe

The Bank of Canada co‑signed a joint statement supporting Federal Reserve chair Jerome Powell after Powell said the U.S. Department of Justice has opened a criminal investigation; the letter stressed the importance of preserving central bank independence.

The Bank of Canada added its voice to a joint statement from several central banks backing U.S. Federal Reserve chair Jerome Powell. Powell said in a video statement that the U.S. Department of Justice is launching a criminal investigation into him. The European Central Bank released the written statement, which was penned by the ECB president and co‑signed by other central bank leaders, including Bank of Canada governor Tiff Macklem. The letter emphasized that preserving central bank independence is critical to economic stability. Key points: - Jerome Powell announced that the U.S. Department of Justice is launching a criminal investigation into him, according to his video statement. - The European Central Bank led a written statement defending central bank independence; it was co‑signed by leaders including Bank of Canada governor Tiff Macklem. - The joint statement underscores the importance of institutional independence; officials did not specify legal or procedural details. Summary: The joint statement highlights central bankers' concern about preserving institutional independence and notes its role in price and financial stability. Officials reported the DOJ matter as described by Powell, and central banks publicly expressed support for the Fed's independence. Undetermined at this time.