Central Banks in the Crossfire: Powell's Struggle for Independence

IMF chief Kristalina Georgieva emphasizes the importance of central bank independence and supports Federal Reserve Chair Jerome Powell amidst a Trump administration investigation over renovation costs. Powell faces pressure and criticism but maintains his stance against Trump's demands for lower interest rates, sparking political debates and international attention.

International Monetary Fund chief Kristalina Georgieva strongly defended the independence of central banks and offered her support to Federal Reserve Chair Jerome Powell, who is currently under investigation by the Trump administration for cost overruns related to the renovation of the Fed's Washington headquarters. Georgieva highlighted the benefits of independent, evidence-based decision-making for the economy.

Georgieva praised Powell's professionalism, noting her collaboration with him and commending his reputation among peers. This comes amid scrutiny of Powell, who has publicly rejected accusations from the Trump administration suggesting a pretext for not meeting demands to lower interest rates.

The probe has stirred controversy among Republican senators, foreign officials, and investors. Despite this, Trump continues to criticize Powell, dismissing concerns about potential impacts on U.S. monetary stability. Meanwhile, Powell is not the only Fed official under fire, as Governor Lisa Cook faces a legal challenge against her removal.

(With inputs from agencies.)