LONDON: The heads of major central banks have thrown their support behind the US Federal Reserve and its chairman Jerome Powell, saying in a joint statement Tuesday that it was “critical to preserve” their independence.
US prosecutors have issued subpoenas against Powell threatening a criminal indictment, an unprecedented move widely seen as an escalation of President Donald Trump’s campaign against the central bank. The inquiry prompted a rare public rebuke by Powell on Sunday, who vowed to continue setting monetary policy “without political fear or favor”.
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” said Tuesday’s statement from central bank leaders around the world.
Its signatories included European Central Bank president Christine Lagarde, Bank of England governor Andrew Bailey and Rhee Chang-yong, governor of South Korea’s central bank.
The statement was not signed, however, by the Bank of Japan. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” the statement said.
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest,” it added. The statement was signed also by the central bank chiefs of Australia, Brazil, Canada, Denmark, Sweden and Switzerland, as well as the chairman of the Bank for International Settlements.
The US inquiry concerns a $2.5-billion renovation of the Fed headquarters in Washington, which Trump has repeatedly attacked Powell of mismanaging.
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