Global central banks back Powell as independence comes under scrutiny

World central bank chiefs, including the Bank of England, ECB and Bank of Canada, signed a joint statement of full solidarity with Federal Reserve Chair Jerome Powell, praising his integrity and the independence of monetary policy as the Justice Department investigates him over a renovation-related matter. Powell warned that political pressure could undermine the Fed’s ability to set policy, amid a 3.6% target rate after three cuts and inflation around 2.7%. Powell’s term ends in May, with a potential successor to be named amid Republican scrutiny, while former Fed chairs and a broad slate of international signatories voiced support for independence.