World Central Bank Chiefs Back US Fed Chair
- Global central banks have publicly backed Federal Reserve Chair Jerome Powell following teh launch of a criminal investigation by the US Department of Justice.
- Heads of the bank of England, European Central Bank, and Bank of Canada, among eleven other senior bankers, released a statement emphasizing the importance of central bank independence...
- The investigation reportedly stems from Powell's testimony regarding renovations to Federal Reserve buildings.
Global central banks have publicly backed Federal Reserve Chair Jerome Powell following teh launch of a criminal investigation by the US Department of Justice.
Heads of the bank of England, European Central Bank, and Bank of Canada, among eleven other senior bankers, released a statement emphasizing the importance of central bank independence in setting interest rates. they affirmed Powell’s “integrity, focused…mandate and unwavering commitment to the public interest.”
The investigation reportedly stems from Powell’s testimony regarding renovations to Federal Reserve buildings. It occurs after a year of criticism from President Donald Trump,who has repeatedly urged the Fed to lower borrowing costs and has personally attacked powell,using terms like “major loser” and “numbskull.”
The bankers stated, “To us, he is a respected colleague who is held in the highest regard by all who have worked with him.”
Powell recently responded to Trump’s criticisms, warning that the Fed’s independence is threatened. He stated the issue is whether the Fed can base decisions on economic evidence or succumb to “political pressure or intimidation.”
The Fed has cut interest rates three times as September, bringing the key lending rate to approximately 3.6%. However, policymakers are divided on future actions. Concerns exist that further cuts could fuel inflation, which, at 2.7% as of December, remains above the Fed’s 2% target.