Extract from ABC News
Jerome Powell issued a video statement on Monday addressing the criminal probe.
In short:
Australia's Reserve Bank chief Michele Bullock has thrown her support behind US Federal Reserve chair Jerome Powell, in a letter signed by 11 other international banking chiefs.
Mr Powell is set to be subject to a criminal probe in the US, which he said was a sign the US Federal Reserve's independence was under threat.
Donald Trump and Jerome Powell have clashed over US interest rates.
Central bank chiefs from across the world have issued a statement in support of Federal Reserve chair Jerome Powell.
News broke on Monday that he was to be the subject of a criminal investigation into testimony he gave about recent renovations at Federal Reserve headquarters in Washington.
He issued a video statement saying he believed the Fed's independence was under attack.
Now 12 central bank chiefs, including the Reserve Bank governor, Michele Bullock, have put their names down in support of him.
"We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell," the statement reads.
"The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.
"It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability."
Donald Trump nominated Jerome Powell to become chair of the US Federal Reserve in 2017. (Reuters: Carlos Barria)
Jerome Powell has indicated he believes the legal threat has nothing to do with the Federal Reserve renovations but rather that US President Donald Trump wants the Federal Reserve to lower interest rates.
The logic is that this would be easier if Mr Powell left the Federal Reserve.
"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," Mr Powell wrote.
The Fed, as it's known, is the equivalent of Australia's Reserve Bank.
Mr Powell said he remains steadfast in his commitment to serve the American people via monetary policy.
"I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favour, focused solely on our mandate of price stability and maximum employment," he said.
"Public service sometimes requires standing firm in the face of threats.
"I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people."
Michele Bullock's public support of her US counterpart is her first foray into the political sphere. (ABC News: John Gunn)
Financial markets have seen the legal attack on the Federal Reserve as positive due to the potential for lower interest rates in the short-term.
But further afield many market participants have expressed their regret Mr Powell, who is seen as staunchly apolitical, has been targeted.
"It's about time — good to see support for him," Marcus Today senior portfolio manager Henry Jennings told ABC News.
"The markets will be OK with that.
"Trump may [now] have to back down."
Independent economist Saul Eslake said central bankers around the world would now be fearful of losing their independence too.
"The world's central bankers recognise that an assault on the independence of the US Federal Reserve, the issuer of the world's reserve currency, makes their own tasks more difficult," Mr Eslake said.
"Not just because it threatens higher inflation and greater instability in their own exchange rates.
"But also because it sets a precedent for the erosion of their own independence."
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