Closing post
Time to wrap up….
Global central banks have issued an extraordinary joint statement offering “full solidarity” to the US Federal Reserve chair, Jerome Powell, in the face of the latest threat to his independence from Donald Trump’s White House.
The statement declares:
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.”
It was signed by 10 central bank governors including the Bank of England governor, Andrew Bailey, and the chair of the European Central Bank, Christine Lagarde. It was coordinated by the Basel-based Bank for International Settlements, which added its chair and general manager to the signatories.
Other signatories to the unprecedented statement include the central bank governors of Australia, Sweden, Denmark, Switzerland, Brazil, South Korea and Canada. Ida Wolden Bache, the governor of the Norwegian Norges Bank, added her name later on Tuesday.
They pay testament to Powell’s “integrity” and “unwavering commitment to the public interest”, calling him a “respected colleague who is held in the highest regard by all who have worked with him.
In other news….
President Trump has said “it would be a complete mess” if the US supreme court were to strike down his global trade tariffs.
Brent crude oil has risen by 2.5% today, to its highest in over two months, as Donald Trump threatened new tariffs on countries who deal with Iran, as protests continue in the country.
China, who could be hit by the new levies, has criticised the move and threatened to hit back.
The World Bank has nudged up its forecast for global growth, but also reported that a quarter of developing countries are poorer than in 2019.
US inflation held firm last month as Donald Trump faces mounting pressure over the cost of living for millions of Americans.
The closely-watched consumer price index rose 2.7% in the year to December, in line with the previous month, according to official data published on Tuesday morning, ahead of a speech by the US president on the economy.
Davos organisers expect Trump-led US delegation to be largest ever
The Americans are coming, to Davos!
Next week’s World Economic Forum meeting in Davos will include the largest US delegation ever including secretaries for state, treasury, commerce, trade and energy alongside U.S. President Donald Trump.
This will be Trump’s third visit to Davos – he attended in 2018 and 2020, and was also beamed in for a video address last year.
WEF president and CEO Borge Brende told reporters today:
“We’re pleased to welcome back President Trump to Davos, and he’s bringing the largest U.S. delegation.”
Special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner are also attending, along with a large bipartisan delegation from the U.S. Congress.
Previous US presidents haven’t really embraced Davos in the same way as Trump (despite his America First rhetoric); he did seem to enjoy being the absolute centre of attention in 2018.
