In an unprecedented move, the leaders of 11 major global central banks have issued a joint statement expressing unwavering support for the Federal Reserve System and its Chair, Jerome H. Powell. This collective voice underscores the vital importance of maintaining central bank independence.

The statement emphasized that such independence is crucial for ensuring stable prices, financial security, and economic health, all of which benefit the citizens these institutions serve.

Meanwhile, former President Donald Trump has criticized Powell, suggesting that the current low inflation rates present an opportunity for a substantial interest rate cut, referring to Powell as “too-late Powell.”

Jerome Powell, the head of the U.S. central bank, now faces a criminal investigation over allegations of “abuse of taxpayer dollars” following a significant increase in a renovation budget. This development is the latest episode in a protracted conflict involving Trump. Source: AP / Julia Demaree Nikhinson/AP

Asked whether the probe of Powell affects the timing of appointing a new Fed chief, Trump said: “No.”

Asked when he expects to announce that decision, Trump said: “Sometime in the next few weeks.”

Fed bank members reassert independence

“I don’t expect that commitment to change, regardless of who is the chair.”