Central bankers around the world are offering their support for US Federal Reserve Chair Jerome Powell after he was threatened with a criminal indictment by the Department of Justice. They said the independence of central banks is "a cornerstone" of their mission.
Powell said in a video statement on Sunday that the case is related to his testimony before lawmakers last June, which was about the Fed's renovation of its headquarters. He said the charges are politically motivated.
Powell said, "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president."
More than a dozen central bankers issued a statement on Tuesday offering their support, including European Central Bank President Christine Lagarde. They said preserving the independence of their institutions is "critical" and that Powell has served with "integrity" and an "unwavering commitment" to the public interest.
Also signing the statement were the central bankers of Australia, Canada and South Korea, but Bank of Japan Governor Ueda Kazuo has not.
The Department of Justice investigation comes after months of pressure from the administration of President Donald Trump. It wants the Fed to aggressively cut interest rates. However, a White House official denied involvement in the investigation.

Quiz 1:
According to the article, what prompted the criminal indictment threat against Jerome Powell?
A. His decision to raise interest rates significantly.
B. His testimony regarding the Fed's headquarters renovation.
C. His public disagreement with President Trump on economic policy.
D. His involvement in a financial scandal within the Federal Reserve.

Quiz 2:
Which of the following best describes the central bankers' reaction to the situation involving Jerome Powell?
A. They expressed concern over the potential impact on the stock market.
B. They remained neutral and offered no comment on the investigation.
C. They voiced their support for Powell and emphasized central bank independence.
D. They criticized Powell's handling of the Fed’s headquarters renovation.

Quiz 3:
What is the stated reason, according to Powell, for the criminal charges against him?
A. The Federal Reserve setting interest rates independently of the President’s preferences.
B. His unauthorized spending on the Federal Reserve’s headquarters.
C. Leaking confidential information to the press about the Fed’s operations.
D. Ignoring directives from the Department of Justice regarding financial regulations.

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A