Central banks of several countries expressed support for the head of the US Federal Reserve in the dispute with the White House
The Department of Justice sent a subpoena to the head of the US Federal Reserve System (FRS) Jerome Powell, which caused a stir. Powell was suspected of being involved in questionable plans to renovate Federal Reserve buildings. He himself connects the situation with the actions of former President Donald Trump and his attempts to gain control of the Fed.
Some central bankers (CBG) have supported Powell. They oppose efforts to strip the Fed of its independence. The joint letter was signed by the heads of the Bank of England, Australia, Sweden, Denmark, Switzerland, Brazil, South Korea and Canada, as well as ECB head Christine Lagarde. They believe that Central Bank independence is the basis for economic and financial stability.
“The independence of central banks is the foundation of price, financial and economic stability for the benefit of the people we serve. It is therefore important that we maintain this independence while fully respecting the rule of law and democratic accountability,” the letter said.
The signatories may be joined by the heads of central banks of other countries, for example France and Austria. Former Fed chiefs Alan Greenspan, Ben Bernanke and Janet Yellen also expressed support for Powell.
There are also those who criticize the views of the head of the Central Bank. They believe that the Central Bank primarily protects the interests of bankers and not of citizens. According to them, the collective letter is evidence that major central banks are involved in macro-financial collusion and influencing political processes around the world.
