World Bankers Voice Support for U.S. Fed Chairman
FRANKFURT, Germany — Top central bankers from around the globe have publicly backed U.S. Federal Reserve Chairman Jerome Powell. This show of support comes after some in Washington questioned the Fed’s operations.
A statement, signed by leaders from nine central banks, including those in Europe and England, said Powell has always acted honestly and focused on his job. They emphasized that these banks must stay independent to keep prices, the financial system, and the economy stable. They added that this independence must respect the law.
The disagreement seems to stem from questions about the cost of renovating Fed buildings. However, some see it as an attempt to control the Fed’s decisions about interest rates.
Experts warn that if the Fed becomes too political and bows to pressure, it could hurt its reputation and lead to economic problems. People might demand higher interest rates to invest in U.S. Treasury bonds if they lose faith in the Fed’s independence.
Other central bank leaders from Sweden, Denmark, Switzerland, Australia, Canada, South Korea and Brazil also signed the statement. Leaders from the Bank for International Settlements, an organization of central banks, also added their names.
The Bank of Japan was not included in the initial statement, but more signatures could be added later.
