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Global Bankers Defend Fed Independence
13 Jan
Summary
- Federal Reserve Chair Powell received grand jury subpoenas from the Justice Department.
- Ten global central banking institutions defended Powell's integrity and Fed independence.
- Former Fed heads and Treasury secretaries criticized the probe as an attack.
Federal Reserve Chair Jerome Powell revealed that the central bank received grand jury subpoenas from the Justice Department. This development has led to a significant show of support from the international financial community.
Ten global central banking institutions, including the European Central Bank and the Bank of England, issued a joint letter defending Powell. They emphasized that central bank independence is crucial for stability and that Powell has served with integrity. The statement underscores the importance of preserving this independence while respecting the rule of law.
The subpoenas are seen as an escalation in a dispute with the former administration concerning monetary policy and interest rates. Prominent US economists and former Treasury secretaries have also voiced their solidarity with Powell, characterizing the investigation as an "unprecedented attempt to use prosecutorial attacks to undermine" the Fed's independence.
