Global Financial Leaders Defend Central Bank Independence
Global central bank leaders have issued a rare joint statement expressing full solidarity with U.S. Federal Reserve Chair Jerome Powell. The move follows news of a criminal investigation into Powell’s conduct and has raised serious concerns about political pressure on independent monetary authorities.
Importantly, the statement highlights growing unease among financial institutions worldwide about threats to central bank independence.
International Support From Top Central Banks
In total, 11 senior central bankers signed the declaration. These include leaders from the Bank of England, the European Central Bank, and the Bank of Canada. Together, they stressed that protecting monetary independence is essential for long-term economic stability.
Moreover, they warned that political interference could undermine public trust and market confidence.
Investigation Triggers Global Alarm
The U.S. Department of Justice is investigating testimony Powell gave to a Senate committee. The testimony related to renovations of Federal Reserve buildings. President Donald Trump said he was unaware of the probe.
However, the investigation follows months of public criticism from Trump. During that time, the president repeatedly attacked Powell over interest rate decisions. He also made personal remarks, calling Powell a “major loser” and a “numbskull.”
As a result, concerns about political influence over monetary policy have intensified.
Central Bank Chiefs Rally Behind Powell
In their statement, global financial leaders strongly defended Powell’s leadership.
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest,” the statement said.
They also described him as a respected colleague held in high regard across the global financial community.
At the same time, the leaders emphasized that independent decision-making remains critical to economic and financial stability.
Powell Warns the Fed’s Independence Is at Stake
After months of silence, Powell addressed the issue publicly over the weekend. He warned that the Federal Reserve’s independence now faces a serious threat.
“This is about whether the Fed can continue setting interest rates based on evidence and economic conditions,” Powell said. “Or whether political pressure will dictate monetary policy.”
Echoing this view, global central bankers noted that independence remains a cornerstone of price stability, financial security, and economic confidence.
Former Fed Chairs and Lawmakers Weigh In
Several former Federal Reserve chairs also voiced support for Powell. These include Janet Yellen, Ben Bernanke, and Alan Greenspan. Yellen described the investigation as “extremely chilling” and warned that investors should be concerned.
“You have a president pushing for lower rates to reduce federal debt costs,” Yellen said. “That is the road to a banana republic.”
Meanwhile, Republican Senator Thom Tillis of North Carolina announced he would oppose confirming any new Federal Reserve nominees. He said he would hold that position until the matter surrounding Powell is fully resolved.
Powell’s Exit and the Road Ahead
Powell, who Trump nominated in 2017, is set to step down as Fed chair in May. Trump is expected to name a successor soon. However, the decision now comes under a cloud of controversy.
Ultimately, global financial leaders warn that the credibility of the U.S. Federal Reserve and the wider financial system depends on keeping monetary policy free from political influence.
Global Signatories Backing Powell
The statement was signed by leading central bank figures, including:
And other senior central bank governors worldwide
Andrew Bailey (Bank of England)
Christine Lagarde (European Central Bank)
Tiff Macklem (Bank of Canada)
Michele Bullock (Reserve Bank of Australia)
Chang Yong Rhee (Bank of Korea)
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