Global central banks defend Fed independence amid Trump pressure

In an unusual show of international unity, central bankers from Australia, Brazil, Canada, Europe, New Zealand, South Africa, South Korea, the United Kingdom and more issued a joint statement backing Fed Chair Jerome Powell as he faces a criminal probe and sustained political pressure from Donald Trump. They stressed that central bank independence is essential for price stability and democratic accountability, warning that politicizing monetary policy could raise inflation and long‑term interest rates, with spillovers for the global economy. The episode echoes historical precedents like the Nixon era and Turkey’s political pressure on its central bank, serving as a warning against undermining monetary autonomy.