Global Central Banks show full solidarity for Fed’s Powell and against Trump!

Fed Chairman Jerome Powell

Global central bankers threw their support behind Chairman Jerome Powell after the Trump administration ratcheted up its already unprecedented pressure campaign against the Federal Reserve, Bloomberg writes.

Reacting to the threat of criminal charges being leveled at the US monetary authority, central bank chiefs including those at the European Central Bank, Bank of England and the Bank of Canada said they “stand in full solidarity” with the Fed and Powell. Central bank governors in South Africa, Iceland and Indonesia added their names to the statement.

Powell himself has also adopted a combative tone in recent days, accusing Donald Trump of seeking to wrest control over monetary policy after the president spent months complaining interest rates are too high.

“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” the central bankers said Tuesday in a statement. “It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.”

Signed by:

The coordinated response underscores growing alarm that monetary autonomy within the world’s most important central bank is being actively dismantled. Such collective action has usually been reserved for global emergencies like the 2008 crash and the pandemic — not the defense of an individual central banker.

The Fed was served grand jury subpoenas from the Justice Department threatening a criminal indictment — an action Powell said is related to his June congressional testimony on renovations of the Fed’s headquarters. The move “should be seen in the broader context of the administration’s threats and ongoing pressure,” he said.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said in a written and video statement.

Responding to a question about Powell, the head of the Reserve Bank of India — who wasn’t part of the joint statement — stressed that it’s important to preserve central banks’ autonomy.

“Independence, of course, is very important,” Governor Sanjay Malhotra told NDTV, adding that it’s important to separate monetary policy from government.

“That is something that we need to all collectively, across jurisdictions, preserve,” he said. “Hopefully, that should only improve over the years.”

…This is a momentous event! Trump has challenged the global financial system! The Federal Reserve is the center of the global dollar system.

Everything depends on this battle — Trump versus global financial capital.

If Trump can subjugate the Fed and gain control of dollar issuance, then only Trump will decide who in the world will receive dollars and how many. Everyone in the world who uses the dollar will be directly dependent on Trump's moods and whims.

If Trump loses, he could face the same fate as President John F. Kennedy...

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