Global Central Banks Rally Behind Jerome Powell Amid Political Pressure

Australia's Treasurer supports the central bank's backing of Jerome Powell against political pressure from the Trump administration. The move emphasizes the importance of central bank independence. Reserve Bank governors from various countries stand in solidarity, although internal disagreements surface within New Zealand's political arena.

Australia's Treasurer has expressed his support for the nation's central bank head, standing behind Jerome Powell, the Federal Reserve Chair, against U.S. political pressures. This show of unity comes as Powell faces criticism from the Trump administration following a probe into the Fed's headquarters.

The administration's actions have drawn concern about the independence of central banks. Global central bank leaders, including Reserve Bank of Australia Governor Michele Bullock, have issued a statement in solidarity with the Federal Reserve and Powell, asserting the importance of autonomy from political influence.

The stance has not been unanimous. In New Zealand, Reserve Bank Governor Anna Breman faced criticism from Foreign Minister Winston Peters, highlighting diverging views within New Zealand's political scene. Treasurer Jim Chalmers affirmed his support for Australia's position, emphasizing respect for international colleagues.

(With inputs from agencies.)