Global Central Banks Unite Against Trump's Fed Pressure
Overview
World central bankers voiced 'full solidarity' with Federal Reserve Chair Jerome Powell amidst escalating pressure from the Trump administration, including alleged threats of criminal charges. This unprecedented, unified statement emphasizes the critical importance of central bank independence for global financial stability. The move signals deep concern over potential political interference in monetary policy.
Global Central Banks Rally Behind Fed
Global central bankers have declared "full solidarity" with Federal Reserve Chair Jerome Powell and the U.S. central bank, responding forcefully to intensified pressure from the Trump administration. The coordinated statement underscores alarm over alleged threats, including criminal charges, aimed at undermining the Fed's autonomy.
Independence Under Fire
In a rare joint declaration on Tuesday, central bank chiefs from major economies, including the European Central Bank (ECB), the Bank of England (BoE), and the Bank of Canada (BoC), affirmed their support. They stressed that central bank independence is a "cornerstone of price, financial and economic stability." This collective action, typically reserved for global crises, highlights the perceived severity of the situation in the United States.
Powell's Combative Stance
Fed Chair Powell himself has adopted a firm tone, accusing President Trump of seeking to control monetary policy. Powell stated that the threat of criminal charges stems directly from the Fed setting interest rates based on its assessment of public interest, rather than political preferences. He noted these actions are related to his testimony concerning renovations at the Fed's headquarters.
Global Financial Anchor
The Federal Reserve's role as a linchpin of the global financial system means that any perceived erosion of its independence is a significant concern for international markets. While many central banks signed the statement, notable absences include the Bank of Japan (BoJ) and the Reserve Bank of New Zealand (RBNZ), which declined to comment or were unavailable for immediate response.
Administration's Position
Despite the united front from global financial institutions, the White House maintains the president has not ordered any probe and defends his right to criticize the central bank. Press Secretary Karoline Leavitt stated on Monday that the president had not ordered the Justice Department investigation.
