investigation into Jerome Powell. The heads of the Bank of England, the European Central Bank and the Bank of Canada are among 11 senior bankers who have signed a statement highlighting the importance of independence in setting interest rates. "Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest," they said. The Department of Justice is conducting the probe. President Donald Trump has said he did not "know anything" about the investigation. The probe is linked to testimony Powell gave to a Senate committee about renovations to Federal Reserve buildings.

It follows a year of relentless attacks on the Fed chair by Trump, who has pushed the Fed to lower borrowing costs more aggressively. As well as criticising Powell's decisions on interest rates, Trump has made personal comments, calling the Fed chair a "major loser" and a "numbskull". Commenting on the Fed chair, the global central bankers said in their joint statement: "To us, he is a respected colleague who is held in the highest regard by all who have worked with him." Until the weekend, Powell had stayed largely silent in the face of Trump's attacks but on Sunday, he publicly pushed back and warned that the independence of the US central bank was at stake. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation," Powell said.

The Fed has cut interest rates three times since September, leaving its key lending rate at around 3.6%. But policymakers are divided about what to do next. Some are worried additional reductions could stoke inflation, which continues to bubble. Consumer prices rose 2.7% over the 12 months to December, according to official figures published on Tuesday. That was the same rate as in November and remained higher than the Fed's 2% target. (BBC)