SNB Chairman Defends Fed Independence and Jerome Powell Amid Justice Department Investigation
SNB Chairman Martin Schlegel affirmed central bank independence at Davos while defending Jerome Powell. This comes as the Fed chair faces a criminal probe.
Insights:
Swiss National Bank Chairman martin schlegel stated on January 21, 2026, at the World Economic Forum in Davos that central bank independence is crucial to controlling inflation. Speaking on a global platform, martin schlegel defended jerome powell, the chair of the U.S. Federal Reserve in the 
US, who currently faces a criminal investigation by donald trump’s Justice Department. This investigation into the renovation of two Federal Reserve buildings in Washington has been characterized by jerome powell as a pretext to pressure the central bank to cut interest rates. donald trump has repeatedly called for the Fed to implement rate cuts to stimulate the economy.
US, who currently faces a criminal investigation by donald trump’s Justice Department. This investigation into the renovation of two Federal Reserve buildings in Washington has been characterized by jerome powell as a pretext to pressure the central bank to cut interest rates. donald trump has repeatedly called for the Fed to implement rate cuts to stimulate the economy.The Swiss National Bank in 
CH was one of several central banks that publicly supported jerome powell following the threat of criminal indictment from the Justice Department. This coordinated international response highlights the growing concern that political pressure threatens monetary policy autonomy. Amidst this global political turbulence, the Swiss Franc has seen significant appreciation as a safe-haven currency. The Swiss Franc gained 14.5% against the dollar in 2025, marking its strongest annual performance since 2002. In the week prior to January 21, 2026, the franc gained an additional 1.4% driven by safe-haven demand amid specific tariff threats and Federal Reserve independence concerns.
CH was one of several central banks that publicly supported jerome powell following the threat of criminal indictment from the Justice Department. This coordinated international response highlights the growing concern that political pressure threatens monetary policy autonomy. Amidst this global political turbulence, the Swiss Franc has seen significant appreciation as a safe-haven currency. The Swiss Franc gained 14.5% against the dollar in 2025, marking its strongest annual performance since 2002. In the week prior to January 21, 2026, the franc gained an additional 1.4% driven by safe-haven demand amid specific tariff threats and Federal Reserve independence concerns.
