Global Central Banks Unite in Defense of Jerome Powell

Central bank chiefs globally support Federal Reserve chair Jerome Powell, countering a criminal indictment threat from the Trump administration. They emphasize the critical independence of central banks for economic stability, while Powell labels the investigation as an attempt to influence interest rates through presidential power.

In a remarkable show of international solidarity, the leaders of several major central banks, including the European Central Bank and the Bank of England, publicly backed Federal Reserve Chair Jerome Powell on Tuesday. This comes in response to an unprecedented threat from the Trump administration, which aims to indict Powell on criminal charges.

Efforts to undermine Powell have drawn criticism from these global financial institutions, who assert that the independence of central banks is crucial to maintaining financial and economic stability for citizens worldwide. The heads of these banks collectively stated their unwavering support for the Federal Reserve System and Powell.

The U.S. administration claims its investigation concerns renovations of the Federal Reserve's headquarters. However, Powell suggests this is merely a guise to exert presidential influence over interest rates, a move that could jeopardize the Fed's crucial independence.

(With inputs from agencies.)