Top central bankers express 'full solidarity' with Fed Chair Powell in clash with Trump

Core Viewpoint - Eleven central bankers globally expressed full support for U.S. Federal Reserve Chair Jerome Powell amid escalating tensions with President Trump, who is threatening criminal investigations against the Fed [1][2]. Group 1: Central Bankers' Support - The statement from central bank leaders emphasized Powell's integrity and commitment to public interest [2]. - The independence of central banks is highlighted as essential for maintaining price, financial, and economic stability, which is crucial for the citizens they serve [3]. Group 2: Political Tensions - The conflict centers around Powell's congressional testimony regarding the costs of Fed building renovations, with Powell labeling the administration's threats as "pretexts" for undermining the Fed's control over interest rate policy [3]. - Trump's ongoing criticism of Powell and the Fed for not cutting rates quickly enough raises concerns about the potential politicization of the Fed, which could harm its credibility in managing inflation and lead to higher investor demands for U.S. Treasurys [4]. Group 3: Signatories of the Statement - The statement of support was signed by various central bank leaders, including Christine Lagarde (European Central Bank), Andrew Bailey (Bank of England), and others from Sweden, Denmark, Switzerland, Australia, Canada, South Korea, Brazil, and the Bank for International Settlements [5].