FRANKFURT, Germany (AP) — Central bankers from around the world said Tuesday they “stand in full solidarity” with U.S. Federal Reserve Chair Jerome Powell, after President Donald Trump dramatically escalated his confrontation with the Fed with the Justice Department investigating and threatening criminal charges.
Powell “has served with integrity, focused on his mandate and an unwavering commitment to the public interest," read the statement signed by nine national central bank heads including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey.
They added that “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."
The dispute is ostensibly about Powell’s testimony to Congress in June over the cost of a massive renovation of Fed buildings. But in a statement Sunday, Powell, abandoning his previous attempt to ignore Trump’s relentless criticism, called the administration’s threat of criminal charges “pretexts’’ in the president’s campaign to seize control of U.S. interest rate policy from the Fed’s technocrats.
Trump has repeatedly criticized Powell and the Fed for not moving faster to cut rates. Economists warn that a politicized Fed that caves in to the president’s demands will damage its credibility as an inflation fighter and likely lead investors to demand higher rates before investing in U.S. Treasurys.
Fed actions have impacts around the world due to the U.S. dollar's role as the leading currency for trade transactions and central bank reserves. Fed interest rate changes can affect the dollar's exchange rate against other currencies and the value of foreign investors′ U.S. assets.
Politically independent central banks have become a cornerstone of the global economy because they can more easily take steps to fight inflation, such as rate hikes, that are unpopular in the short term but preserve price stability over the longer term.
Other signatories of the statement carried on the ECB's website were Erik Thedeen, governor of Sweden's central bank; Christian Kettel Thomsen, chair of Denmark's central bank; Swiss National Bank Chair Martin Schlegel; Michele Bullock, governor of the Reserve Bank of Australia; Tiff Macklem, governor of the Bank of Canada; Bank of Korea Governor Chang Yong Rhee; and Gabriel Galipolo, governor of the Banco Central do Brasil.
Also attaching their names were François Villeroy de Galhau, board chair of the Bank for International Settlements, and Pablo Hernández de Cos, BIS general manager. The BIS is an international organization of central banks based in Basel, Switzerland.
One prominent central bank not included in the statement was the Bank of Japan. The statement said that more signatures could be added later. Bank of Japan officials could not immediately be reached for comment.
A video of Federal Reserve Chair Jerome Powell plays on a screen on the floor of the New York Stock Exchange, Monday, Jan. 12, 2026. (AP Photo/Richard Drew)
Iran eased some restrictions on its people and, for the first time in days, allowed them to make phone calls abroad via their mobile phones on Tuesday. It did not ease restrictions on the internet or permit texting services to be restored as the death toll from days of bloody protests against the state rose to at least 2,000 people, according to activists.
Although Iranians were able to call abroad, people outside the country could not call them, several people in the capital told The Associated Press.
The witnesses, who spoke on condition of anonymity for fear of reprisal, said SMS text messaging still was down and internet users inside Iran could not access anything abroad, although there were local connections to government-approved websites.
It was unclear if restrictions would ease further after authorities cut off all communications inside the country and to the outside world late Thursday.
Here is the latest:
The U.S.-based Human Rights Activists News Agency, which has been accurate in previous unrest in recent years, gave the latest death toll on Tuesday.
It said 1,847 of the dead were protesters and 135 were government-affiliated.
This came a day after the European Parliament announced it would ban Iranian diplomats and representatives.
“Iran does not seek enmity with the EU, but will reciprocate any restriction,” Foreign Minister Abbas Araghchi wrote on X on Tuesday.
He also criticized the European Parliament for not taking any significant action against Israel for the more than two-year war in Gaza that has killed more than 71,400 Palestinians, while banning Iranian diplomats after just “a few days of violent riots.”
Dutch Foreign Minister David van Weel said he summoned Iran’s ambassador to the Netherlands “to formally protest the excessive violence against peaceful protesters, large-scale arbitrary arrests, and internet shutdowns, calling for immediate restoration of internet access inside the Islamic Republic.
In a post on X, Weel also said the Dutch government supports EU sanctions against “human rights violators in Iran.”
The United Nations human rights chief is calling on Iranian authorities to immediately halt violence and repression against peaceful protesters, citing reports of hundreds killed and thousands arrested in a wave of demonstrations in recent weeks.
“The killing of peaceful demonstrators must stop, and the labelling of protesters as ‘terrorists’ to justify violence against them is unacceptable,” U.N. High Commissioner for Human Rights Volker Türk said in a statement Tuesday.
Alluding to a wave of protests in Iran in 2022, Türk said demonstrators have sought “fundamental changes” to governance in the country, “and once again, the authorities’ reaction is to inflict brutal force to repress legitimate demands for change.”
“This cycle of horrific violence cannot continue,” he added.
It was also “extremely worrying” to hear some public statements from judicial officials mentioning the prospect of the use of the death penalty against protesters through expedited judicial proceedings, Türk said.
“Iranians have the right to demonstrate peacefully. Their grievances need to be heard and addressed, and not instrumentalized by anyone,” Türk said.
Finland’s foreign minister says she is summoning the Iranian ambassador after authorities in Tehran restricted internet access.
“Iran’s regime has shut down the internet to be able to kill and oppress in silence," Elina Valtonen wrote in a social media post Tuesday, adding, “this will not be tolerated. We stand with the people of Iran — women and men alike.”
Finland is “exploring measures to help restore freedom to the Iranian people” together with the European Union, Valtonen said.
Separately, Finnish police said they believe at least two people entered the courtyard of the Iranian embassy in Helsinki without permission Monday afternoon and tore down the Iranian flag. The embassy’s outer wall was also daubed with paint.
Iranian security forces arrested what a state television report described as terrorist groups linked to Israel in the southeastern city of Zahedan.
The report, without providing additional details, said the group entered through Iran’s eastern borders and carried U.S.-made guns and explosives that the group had planned to use in assassinations and acts of sabotage.
The Israeli military did not immediately comment on the allegations.
The Nobel Peace Prize laureate hailed people who have “long warned about this repression, at great personal risk.”
“The protests in Iran cannot be separated from the long-standing, state-imposed restrictions on girls’ and women’s autonomy, in all aspects of public life including education. Iranian girls, like girls everywhere, demand a life with dignity,” Yousafzai wrote on X.
“(Iran’s) future must be driven by the Iranian people, and include the leadership of Iranian women and girls — not external forces or oppressive regimes,” she added.
Yousafzai was awarded the peace prize in 2014 at the age of 17 for her fight for girls’ education in her home country, Pakistan. She is the youngest Nobel laureate.
The French Foreign Ministry said it has “reconfigured” its embassy in Tehran after reports that the facility's nonessential staff left Iran earlier this week.
The embassy's nonessential staff left the country Sunday and Monday, French news agency Agence France-Presse reported.
The ambassador remained on site and the embassy continued to function, the ministry said late Monday night.
Associated Press writer Angela Charlton contributed from Paris.
German Chancellor Friedrich Merz said he believes the Iranian government is in its “final days and weeks,” as he renewed a call for Iranian authorities to end violence against demonstrators immediately.
“If a regime can only keep itself in power by force, then it’s effectively at the end,” Merz said Tuesday during a visit to Bengaluru, India. “I believe we are now seeing the final days and weeks of this regime. In any case, it has no legitimacy through elections in the population. The population is now rising up against this regime.”
Merz said he hoped there is “a possibility to end this conflict peacefully," adding that Germany is in close contact with the U.S. and European governments.
The Israeli military said it continues to be “on alert for surprise scenarios” due to the ongoing protests in Iran, but has not made any changes to guidelines for civilians, as it does prior to a concrete threat.
“The protests in Iran are an internal matter,” Israeli military spokesperson Brig. Gen. Effie Defrin wrote on X.
Israel attacked Iran’s nuclear program over the summer, resulting in a 12-day war that killed nearly 1,200 Iranians and almost 30 Israelis. Over the past week, Iran has threatened to attack Israel if Israel or the U.S. attacks.
Mobile phones in Iran were able to call abroad Tuesday after a crackdown on nationwide protests in which the internet and international calls were cut. Several people in Tehran were able to call The Associated Press.
The AP bureau in Dubai, United Arab Emirates, was unable to call those numbers back.
Witnesses said the internet remained cut off from the outside world. Iran cut off the internet and calls on Thursday as protests intensified.
This frame grab from videos taken between Jan. 9 and Jan. 11, 2026, and circulating on social media purportedly shows images from a morgue with dozens of bodies and mourners after crackdownon the outskirts of Iran's capital, in Kahrizak, Tehran Province. (UGC via AP)
This frame grab from videos taken between Jan. 9 and Jan. 11, 2026, and circulating on social media purportedly shows images from a morgue with dozens of bodies and mourners after crackdown on the outskirts of Iran's capital, in Kahrizak, Tehran Province. (UGC via AP)
This frame grab from videos taken between Jan. 9 and Jan. 11, 2026, and circulating on social media purportedly shows images from a morgue with dozens of bodies and mourners after crackdown on the outskirts of Iran's capital, in Kahrizak, Tehran Province. (UGC via AP)
Protesters hold up placards and flags as they demonstrate outside the Iranian Embassy in London, Monday, Jan. 12, 2026. (AP Photo/Alastair Grant)
Shiite Muslims hold placards and chant slogans during a protest against the U.S. and show solidarity with Iran in Lahore, Pakistan, Sunday, Jan. 11, 2026. (AP Photo/K.M. Chaudary)
Activists carrying a photograph of Reza Pahlavi take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House, in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
Protesters burn the Iranian national flag during a rally in support of the nationwide mass demonstrations in Iran against the government in Paris, Sunday, Jan. 11, 2026. (AP Photo/Michel Euler)
People attend a rally in Frankfurt, Germany, Monday, Jan. 12, 2026. (Boris Roessler/dpa via AP)
A picture of Ayatollah Ali Khamenei is set alight by protesters outside the Iranian Embassy in London, Monday, Jan. 12, 2026. (AP Photo/Alastair Grant)
