Global Central Bankers Show 'Full Solidarity' With Fed's Powell Amid Face-Off With Trump

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.

Even before Tuesday’s statement, the role of the Fed and the US dollar as anchors of the global financial system had already prompted some to weigh in.

BoC Governor Tiff Macklem on Monday offered his “full support” to Powell, saying he “reflects the very best in public service.”

“Chair Powell is doing a very good job under difficult circumstances, guiding the Fed to take monetary policy decisions based on evidence, not politics,” Macklem said by email.

Other central-bank chiefs — including Lagarde — have repeatedly highlighted the importance of monetary-policy independence and defended and praised Powell.

Bundesbank President Joachim Nagel this week called central-bank independence “a prerequisite for price stability and a valuable asset.”

“Against this backdrop, the latest developments in the US regarding the Fed chair are cause for concern,” he said.

Trump has repeatedly called for aggressive rate cuts, arguing the Fed should be acting to boost housing affordability and ease the government’s borrowing costs. In an interview Sunday with NBC News, the US president denied having any knowledge of the DOJ’s investigation into the central bank.

White House Press Secretary Karoline Leavitt told reporters Monday that the president hadn’t ordered the probe and defended his right to criticize the central bank.