Global Central Banks Support Powell, Warning Political Pressure Could Disrupt Markets

Central Banks Uphold Fed's Independence

Central banks worldwide have declared their support for U.S. Federal Reserve Chair Jerome Powell, warning that political pressure on the Fed could undermine global financial and economic stability. In a joint statement published on Tuesday, governors from 11 major central banks affirmed that they "stand in full solidarity with the Federal Reserve System and President Jerome H. Powell," emphasizing the importance of central bank independence.

This statement comes amid a criminal investigation launched by U.S. authorities against Powell concerning a $2.5 billion renovation of the Fed's headquarters, an action that has heightened tensions between the central bank and the Trump administration.

Signatories of the statement include European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem. Senior officials from the Bank for International Settlements also endorsed the declaration.

Cryptocurrency experts emphasize that political pressure on the Fed could result in volatility in digital asset markets but may also steer investments toward Bitcoin and gold in the long run.

Farzam Ehsani, CEO of cryptocurrency exchange VALR, stated that central bank independence is considered a pillar of macroeconomic stability. "Any attempt at political influence affects investor confidence," he added. Additionally, Youssef, CEO of the crypto app NoOnes, noted that the dollar has weakened while gold and silver have gained, suggesting that investors are shifting toward safe havens.

In this context, several allies of President Trump have aligned as potential replacements for Powell, many of whom publicly favor lowering interest rates. Kevin Hassett, a senior economic advisor to Trump, is viewed as the leading candidate and has stated that Trump's personal opinions will not directly influence Fed decisions.