The global financial system is facing an unprecedented test of central bank independence as Federal Reserve chair Jerome Powell confronts a criminal investigation while central bankers worldwide unite in defence of monetary autonomy. In a striking expression of international financial solidarity, leaders from major central banks issued a rare joint statement backing Powell after the US Department of Justice (DoJ) launched a criminal probe into his conduct.
In the statement, governors from 11 central banks across Europe, North America, Asia and Latin America said they 'stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell', stressing that the independence of their institutions is vital for economic stability and public trust. The signatories include Bank of England governor Andrew Bailey, European Central Bank president Christine Lagarde, and counterparts from Sweden, Denmark, Switzerland, Australia, Canada, South Korea and Brazil.
