Global central banks offer full solidarity' to US Fed's Powell amid Trump threats

"They pay testament to Powell's integrity, and unwavering commitment to the public interest, calling him a respected colleague who is held in the highest regard by all who have worked with him. Trump has repeatedly criticised Powell, whom he appointed in 2018, for failing to cut interest rates fast enough. But the clash between the two men took a dramatic turn earlier this week when Powell issued a strongly worded video statement, saying he was being prosecuted by the US Department of Justice."

"He called the move unprecedented action [that] should be seen in the broader context of the administration's threats and ongoing pressure over monetary policy. He said he had been singled out because the Fed's policymaking board had set interest rates, based on our best assessment of what will serve the public, rather than following the preferences of the president. Trump has moved to distance himself from the investigation, however, claiming he was unaware of it."

Major central banks declared full solidarity with US Federal Reserve chair Jerome Powell amid political pressure on his independence. The governors emphasized that central bank independence underpins price, financial and economic stability and must be preserved with respect for the rule of law and democratic accountability. Nine central bank governors and the Bank for International Settlements coordinated the action, with signatories including leaders from the UK, EU, Australia, Sweden, Denmark, Switzerland, Brazil, South Korea and Canada. The signatories praised Powell's integrity and commitment to the public interest while noting recent tensions with President Trump and Powell's claim of prosecution.

Read at www.theguardian.com