(C) KUTV
SEOUL / FRANKFURT – In an unprecedented show of international unity, central bank governors from the world’s leading economies have issued a joint statement expressing "full solidarity" with U.S. Federal Reserve Chair Jerome Powell. This move comes as Powell faces a looming criminal indictment by the Trump administration following his refusal to succumb to presidential pressure for rapid interest rate cuts.
On January 13 (local time), the heads of central banks from the European Union (ECB), United Kingdom, Canada, Australia, and South Korea, among others, published a collective declaration on the European Central Bank’s official website. The statement lauded Powell for his "unwavering commitment to public service" and noted that he has performed his duties with the utmost "integrity and dedication to the public interest."
The joint action serves as a direct rebuttal to what many see as a politically motivated attack on the Federal Reserve's autonomy. "The independence of central banks is the cornerstone of price stability, financial stability, and overall economic resilience," the statement read. It further emphasized that such independence must be preserved while fully respecting the rule of law and democratic accountability.
The coalition includes ten major central bank leaders, including Rhee Chang-yong, Governor of the Bank of Korea. Their involvement signals deep international concern that the current legal pressure on Powell could destabilize global financial markets and set a dangerous precedent for executive interference in monetary policy.
The controversy reached a boiling point on January 11, when Chair Powell released a video statement revealing that he is under investigation by the Trump administration regarding the renovation of the Federal Reserve’s headquarters. Powell characterized the investigation as an "unprecedented threat" to the Fed’s independence, asserting that the administrative actions are a retaliatory response to his policy decisions.
Financial experts suggest that this rare collective intervention by global central bankers highlights the severity of the rift between the White House and the Federal Reserve. By standing with Powell, global leaders are reinforcing a long-held economic principle: that monetary policy must be insulated from short-term political interests to ensure long-term global prosperity.
As the legal battle unfolds, the international community remains on high alert, watching whether the principles of institutional independence will withstand this historic challenge from the executive branch.
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