Summary
Top central bankers from around the world expressed support for U.S. Federal Reserve Chair Jerome Powell following a criminal investigation initiated by the Trump administration. The central bankers emphasized the importance of the Federal Reserve's independence for global economic stability. This support comes amid concerns that political interference could harm the Fed's credibility and affect the U.S. and global economies.
Key Facts
- Many global central bankers backed Fed Chair Jerome Powell after a U.S. criminal investigation began.
- The Trump administration is pressuring the Fed to lower interest rates.
- Central bank independence is seen as vital for economic stability.
- The statement of support came from central bank leaders, including those from Europe and the UK.
- The U.S. is the world's largest economy, impacting global economic conditions.
- The Bank of Japan did not sign the statement, citing a policy to avoid commenting on other banks' statements.
- The Justice Department issued subpoenas related to Fed headquarters renovation costs.
- President Trump aims to decrease federal funds rates to 1%, lower than the current 3.5%–3.75%.
- Jerome Powell can remain a Fed governor until 2028, even if replaced as chair in May.
