In a joint statement, the Swedish Central Bank, the European Central Bank (ECB) and the Bank of England write that Powell “is a respected colleague” and express “full solidarity with Powell.” They also emphasize that the independence of central banks is a cornerstone when it comes to financial and economic stability.
"It is therefore crucial to preserve this independence, in full respect for the rule of law and democratic accountability," Sweden's Erik Thedéen, the Bank of England's Andrew Bailey and the ECB's Christine Lagarde, among others, write in the statement.
Thedéen says on "Aktuellt" that the allegations against Powell must be seen in a larger context.
This is part of a campaign to have him removed. We will tolerate criticism, but not personal attacks and accusations.
Threat of prosecution
On Monday, a number of former U.S. Federal Reserve governors and Treasury officials issued a call for the central bank's independence. Among those who signed the call are names such as Janet Yellen, Ben Bernanke and Allan Greenspan.
The background is the threat of prosecution against Federal Reserve Chair Powell, which in turn is linked to the criminal investigation that has been initiated regarding a renovation of the central bank's main building. Powell himself has commented that it is actually about the Fed not lowering interest rates as much as Trump wanted.
This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressures or threats, Powell said in a video commenting on the development.
Battle with Powell
Trump has repeatedly engaged in a battle with the Fed chief during his presidency. The president has called Powell a “stubborn donkey” because the central bank has not cut interest rates to the extent Trump wanted to see. He has also suggested that Powell built himself a “palace” in connection with the renovation.
Jerome Powell's term as Fed chair expires in May. However, he can remain on the board until 2028. He has not yet announced what he intends to do.
