ECB, Bank of England, Bank of Canada and others warn political interference could destabilise global markets
Some of the world’s most powerful central bankers have publicly closed ranks around US Federal Reserve Chair Jerome Powell, issuing a rare collective defence of America’s central bank as President Donald Trump intensifies pressure on the Fed to cut interest rates.
In an unusual show of unity, the heads of 11 major monetary authorities released a joint statement affirming that the credibility and independence of the Federal Reserve are vital to global financial stability. The move comes after reports emerged that Powell could face a criminal inquiry linked to earlier testimony before Congress, a development that has alarmed policymakers and investors worldwide.
Global monetary leaders cautioned that allowing political influence to seep into central banking decisions would weaken confidence in inflation control and inject instability into financial markets far beyond US borders.
They stressed that independent central banks remain a key pillar in protecting economies from runaway inflation, market disruptions, and currency volatility.
Central bank governors from Europe, the UK, Canada, Australia, Switzerland, South Korea, Brazil, and several Nordic nations were among the signatories.
The Bank for International Settlements, often described as the central bank for central banks, also backed the statement. Japan’s central bank did not sign, though officials said the list could still expand.
Officials fear that undermining the Fed’s autonomy would push up US inflation expectations, drive sharp swings in bond yields, and disrupt the dollar’s role as the world’s primary reserve currency.
The Federal Reserve also plays a crucial role in supplying emergency dollar liquidity to other central banks during periods of market stress—a function that could be compromised if its policy credibility were questioned.
With Trump openly calling for rate cuts, policymakers warn that eroding the Fed’s independence could export financial turbulence to every major economy tied to US markets.
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