Global Central Banks Unite in Support of Fed Chair Jerome Powell

Central Bank leaders globally issued a rare joint statement supporting Federal Reserve Chair Jerome Powell after threats of criminal indictment by the Trump administration. The unprecedented backing underscores the importance of maintaining central bank independence to ensure economic stability amid fears of political influence undermining this principle.

In an extraordinary show of international support, central bank chiefs from across the globe backed Federal Reserve Chair Jerome Powell on Tuesday, following threats of a criminal indictment from the Trump administration.

The controversy stems from Powell's Congressional testimony about renovations at the Fed's headquarters, which the chair has labeled as a political maneuver to exert influence over interest rates. A unified statement from central banking leaders emphasized the crucial role of institutional independence in keeping economic stability intact.

The statement saw backing from leaders such as ECB President Christine Lagarde and figures from Sweden to South Korea, though the Bank of Japan notably absent, sparking discussions on potential future signatories. Finance leaders warn of the dangers of undermining the Fed's commitment to its inflation targets, voicing concern over resultant market volatility.

(With inputs from agencies.)