The President of the European Central Bank, Christine Lagarde, the General Manager of the Bank for International Settlements, Pablo Hernández de Cos, and up to 11 central bank officials from around the world have issued an unusual joint statement in defense of Jerome Powell. He is the Chairman of the Federal Reserve of the United States who has reported harassment by the President of his country, Donald Trump, for ignoring his pressures to further lower interest rates.
"We fully support the Federal Reserve System and its President, Jerome H. Powell. The independence of central banks is a fundamental pillar of price, financial, and economic stability, for the benefit of the citizens we serve," these Western central bankers personally sign.
"Therefore, it is essential to preserve this independence, with full respect for the rule of law and democratic accountability. President Powell has served with integrity, focused on his mandate, and with an unwavering commitment to the public interest. For us, he is a respected colleague and highly valued by all who have worked with him," they assert.
In addition to Lagarde and the former Governor of the Bank of Spain now in Basel,, other prominent bankers such as the Governor of the Bank of England, Andrew Bailey, Sweden's Erik Thedéen, Denmark's Christian Kettel Thomsen, Switzerland's Martin Schlegel, and the French official working alongside De Cos, François Villeroy de Galhau, also sign. From outside Europe, signatories include Michele Bullock, Governor of the Reserve Bank of Australia, Tiff Macklem from Canada, Chang Yong Rhee from Korea, and Gabriel Galípolo from Brazil.
German Chancellor, Friedrich Merz, has also expressed concern about the pressure on Powell and other central bankers. "I have been concerned not only about the events of recent days and weeks, but about how political influence on central banks around the world is increasing," he stated in India, according to Reuters. Merz, a conservative, maintains the social democrat Joachim Nagel as head of the German central bank.
The pressure from the US Attorney's Office on Powell for alleged misappropriation in Federal Reserve buildings has weakened the dollar, as the Federal Reserve is considered a pillar of credibility in the monetary system that must act independently.