Bank of Canada’s Macklem backs U.S. Fed chair Powell amid DOJ probe

By Canadian Press on January 12, 2026.

OTTAWA — Bank of Canada governor Tiff Macklem is coming to the defence of his U.S. counterpart Jerome Powell as the chair of the Federal Reserve faces a criminal investigation from President Donald Trump’s justice department.

Powell said Sunday that the U.S. DOJ had subpoenaed the Fed on Friday in what he alleged was a response to independent monetary policymakers south of the border refusing to lower interest rates per Trump’s wishes.

Macklem previously offered his support for Powell in the face of pressure from the Trump administration and he said in a statement today that the Fed chair “reflects the very best in public service” and has his “full support.”

He says Powell is doing a “very good job under difficult circumstances” and is making Fed decisions “based on evidence, not politics.”

The Bank of Canada and the U.S. Fed both operate independently from government, but Trump has expressed anger over Powell’s refusal to drop interest rates and boost the economy.

Macklem says the independence of central banks is critical to delivering price stability and gives monetary policymakers the space to take difficult decisions that benefit the economy, “free from short-term political interference.”

This report by The Canadian Press was first published Jan. 12, 2026.

Craig Lord, The Canadian Press