Michele Bullock, global central bankers throw support behind US Fed chair Jerome Powell
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The news: Central bankers from a slate of countries, including the governor of the Reserve Bank of Australia, Michele Bullock, have thrown their support behind the US Federal Reserve’s chairman Jerome Powell after the Trump administration threatened the US monetary authority with criminal charges.
The context: Reacting the unprecedented action launched by the US Department of Justice (DoJ), the bankers released a statement on Tuesday which said that they stand “in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.”
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him”, the statement said.
Late Sunday evening, Powell confirmed that the US central bank had been served grand jury subpoenas from the DoJ threatening a criminal indictment.
In a written and video statement, Powell said the "unprecedented action" was related to his testimony before the Senate Banking Committee last June, which partly concerned a multi-year project to renovate the Fed's office buildings.
Powell said the DoJ's move "should be seen in the broader context of the administration's threats and ongoing pressure". The subpoenas were received by the Fed on Friday.
Tuesday’s statement was signed by :
Christine Lagarde, President of the European Central Bank on behalf of the ECB Governing Council
Andrew Bailey, Governor of the Bank of England
Erik Thedéen, Governor of Sveriges Riksbank
Christian Kettel Thomsen, Chairman of the Board of Governors of the Danmarks Nationalbank
Martin Schlegel, Chairman of the Governing Board of the Swiss National Bank
Michele Bullock, Governor of the Reserve Bank of Australia
Tiff Macklem, Governor of the Bank of Canada
Chang Yong Rhee, Governor of the Bank of Korea
Gabriel Galípolo, Governor of the Banco Central do Brasil
François Villeroy de Galhau, Chair of the Board of Directors of the Bank for International Settlements
Pablo Hernández de Cos, General Manager of the Bank for International Settlements
Ida Wolden Bache, Governor of Norges Bank
The source: ECB
