The world’s leading central bankers have issued an unusually direct joint statement backing Jerome H. Powell and the Federal Reserve System, framing the controversy surrounding his recent remarks as a test of central bank independence rather than a domestic US dispute. The declaration, released by the European Central Bank on Tuesday, underscores growing international concern about political pressure on monetary authorities.
The statement follows Powell’s speech on 11 January, in which the Fed chair warned that legal actions against him risked undermining the Federal Reserve’s ability to set interest rates free from political intimidation. While Powell spoke in a US context, the response from abroad makes clear that other central banks see broader implications for the global monetary system.
A coordinated defence of independence
Issued on 13 January and signed by a wide group of central bank governors, the text expresses “full solidarity” with the Federal Reserve and its chair. It describes central bank independence as “a cornerstone of price, financial and economic stability” and stresses that this independence must be preserved alongside respect for the rule of law and democratic accountability.
The wording is strikingly personal by the standards of central bank communication. Powell is praised for having “served with integrity, focused on his mandate and an unwavering commitment to the public interest,” and is described as a “respected colleague” held in the highest regard by his peers.
The statement is attributed to Christine Lagarde, speaking on behalf of the ECB Governing Council, but the list of signatories extends well beyond the euro area. It includes Andrew Bailey, Erik Thedéen, Martin Schlegel, and Tiff Macklem, among others. Senior figures from the Bank for International Settlements also added their names.
Why it matters beyond the US
Public, coordinated interventions of this kind are rare. Central banks typically avoid commenting on the domestic political or legal disputes of their counterparts. That so many chose to do so in this case signals anxiety that challenges to the Federal Reserve’s autonomy could set a precedent elsewhere.
For Europe, the message carries particular weight. The ECB has repeatedly argued that its own independence is essential as it navigates sensitive issues ranging from inflation control to the design of a future digital euro. Any erosion of the norm in the United States would weaken the informal global consensus that shields central banks from short-term political interests.
The ECB statement also implicitly links independence to credibility. By emphasising Powell’s mandate-focused approach, the signatories underline that trust in monetary policy depends not only on legal frameworks, but on the perception that central bankers can act without fear of retaliation when their decisions are unpopular.
The note ends with a caveat that additional signatories may be added later, suggesting the coalition could broaden further. If so, the episode may come to be seen as a defining moment in which central banks collectively drew a line in defence of their institutional autonomy.
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