Global Central Banks Rally to Defend Fed Chair Powell Amid U.S. Probe

Central bank leaders worldwide have expressed support for Federal Reserve Chair Jerome Powell after the Trump administration's probe regarding the Fed's renovation. They assert central bank independence is vital for financial stability and criticize political interference's potential impact on inflation and market volatility.

In a unified move, leaders from major global central banks issued a statement supporting Federal Reserve Chair Jerome Powell as he faces a criminal investigation by the Trump administration. The inquiry centers on the renovation of the Fed headquarters, which Powell claims is a pretext for exerting presidential influence over interest rates.

The heads of the European Central Bank, Bank of England, Bank of Canada, and several other institutions emphasized Powell's integrity, underscoring the importance of central bank independence for financial stability. Their statement highlighted that such independence is essential for maintaining stable prices and markets, crucially serving citizens' interests.

The U.S. probe has sparked criticism, with concerns that political meddling could undermine the Fed's commitment to its inflation targets, potentially leading to increased volatility and higher inflation worldwide. Central bankers stress preserving this independence within legal and democratic boundaries to ensure economic equilibrium.

(With inputs from agencies.)