Global central bank leaders have rallied behind US Federal Reserve Chair Jerome Powell, warning that political pressure on the Fed risks undermining financial and economic stability worldwide.

In a joint statement released Tuesday, governors from 11 major central banks said they “stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” stressing the importance of central bank independence.

The statement comes after US authorities opened a criminal investigation into Powell over a $2.5 billion renovation of the Fed’s headquarters, a move that has intensified tensions between the central bank and the Trump administration.

The signatories include European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Bank of Canada Governor Tiff Macklem, and leaders of the central banks of Sweden, Denmark, Switzerland, Norway, Australia, South Korea and Brazil. Senior officials from the Bank for International Settlements also signed the statement.

Related: What the Fed’s divided 2026 outlook means for Bitcoin and crypto

Fed pressure could fuel volatility, boost Bitcoin

Farzam Ehsani, CEO of crypto exchange VALR, said the situation sends mixed signals to digital asset markets.

“Central bank independence is traditionally considered a pillar of macroeconomic stability,” Ehsani said in a note shared with Cointelegraph. “Any attempt at political influence affects investor confidence. For crypto, weaker confidence in dollar policy can drive interest in decentralized assets, but sudden political shocks also increase volatility and short-term outflows from risk assets,” he added.

Ray Youssef, CEO of crypto app NoOnes, said that the dollar has weakened while gold and silver have risen, suggesting investors are rotating into perceived safe havens.

“A rate cut could increase liquidity and support crypto prices,” Youssef said. “But for now, the market remains fragile, with Bitcoin seeing selling pressure during US trading hours despite longer-term interest,” he added.

Related: VanEck says policy clarity could make Q1 a ‘risk-on’ quarter

Trump allies line up as potential Powell replacements

US President Donald Trump has lined up several loyal allies as possible successors to Powell, many of whom have publicly supported cutting interest rates. Kevin Hassett, a senior economic adviser to Trump and widely seen as the leading candidate, has said that Trump’s personal views on rates would not directly influence Fed decisions.