Global Central Banks Rally Behind Jerome Powell Amid Trump Confrontation

Central bankers worldwide have expressed support for US Federal Reserve Chair Jerome Powell in light of President Donald Trump's confrontational stance. They emphasize the critical importance of central bank independence. Powell criticizes the administration's threats, which economists warn could harm the credibility of the Federal Reserve's inflation-fighting stance.

Central bankers from across the globe voiced their firm support Tuesday for US Federal Reserve Chair Jerome Powell amid escalating tensions with President Donald Trump. The Justice Department's investigation and threat of criminal charges against Powell mark a new chapter in Trump's fraught relationship with the Fed.

In a statement, signed by nine national central bank leaders, the group hailed Powell's integrity and commitment to public interest. Among the signatories were European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey. They underscored the importance of central bank independence for maintaining economic stability.

While the dispute centers on Powell's congressional testimony regarding Fed building renovations, the undercurrent is Trump's demand for quicker interest rate cuts. Economists caution that a politicized Fed could undermine its credibility, potentially pushing investors to seek higher returns before engaging in US Treasurys.

(With inputs from agencies.)