Global Central Banks Offer ‘Full Solidarity’ to US Fed’s Powell amid Trump Threats

THE GUARDIAN: Nine governors including Bank of England’s Andrew Bailey and ECB’s Christine Lagarde say independence is critical

Global central banks have issued an extraordinary joint statement offering “full solidarity” to the US Federal Reserve chair, Jerome Powell, in the face of the latest threat to his independence from Donald Trump’s White House.

“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,” the statement said.

It was signed by nine central bank governors including the Bank of England governor, Andrew Bailey, and the chair of the European Central Bank, Christine Lagarde. It was coordinated by the Basel-based Bank for International Settlements, which added its chair and general manager to the signatories.

Other signatories to the unprecedented statement include the central bank governors of Australia, Sweden, Denmark, Switzerland, Brazil, South Korea and Canada. More names are expected to be added later on Tuesday.

They pay testament to Powell’s “integrity” and “unwavering commitment to the public interest”, calling him a “respected colleague who is held in the highest regard by all who have worked with him”. » | Heather Stewart, Economics editor | Tuesday, January 13, 2026

Federal Prosecutors Open Investigation Into Fed Chair Powell

THE NEW YORK TIMES: The investigation, which is said to center on renovations of the Federal Reserve’s headquarters in Washington, signals an escalation in the long-running clash between President Trump and the chair.

The U.S. attorney’s office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central bank’s renovation of its Washington headquarters and whether Mr. Powell lied to Congress about the scope of the project, according to officials briefed on the situation.

The inquiry, which includes an analysis of Mr. Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the officials said.

The investigation escalates Mr. Trump’s long-running feud with Mr. Powell, whom the president has continually attacked for resisting his demands to slash interest rates significantly. The president has threatened to fire the Fed chair — even though he nominated Mr. Powell for the position in 2017 — and raised the prospect of a lawsuit against him related to the $2.5 billion renovation, citing “incompetence.”

Mr. Trump told The New York Times in an interview last week that he had decided on who he wants to replace Mr. Powell as Fed chair. He is expected to soon announce his decision. Kevin A. Hassett, Mr. Trump’s top economic adviser, is a front-runner for the top job. While Mr. Powell’s term as chair ends in May, his term as a governor runs through January 2028. Mr. Powell has not disclosed whether he plans to stay on at the central bank beyond this year.

Mr. Powell, in a rare video message released by the Fed, acknowledged on Sunday that the Justice Department had served the central bank with grand jury subpoenas days earlier. He described the investigation as “unprecedented” and questioned the motivation for the move, even as he affirmed that he carried out his duties as chair “without political fear or favor.” » | Glenn Thrush and Colby Smith | Sunday, January 11, 2026

Former Treasury Secretary Janet Yellen Weighs In on Trump’s Battle with the Federal Reserve

Janet Yellen explains.

Trump Is an ‘Economic Moron’ | Scott Lucas Analyses Trump’s ‘Decisions

Aug 27, 2025 | Professor Scott Lucas joins Times Radio’s Maddie Hale to discuss Donald Trump’s decision to fire Federal Reserve Governor Lisa Cook, whether he is acting as a dictator in his efforts to crack down on the “crime emergency” in Washington DC and reports American citizens have been conducting a “covert influence operation” in Greenland.

Trump pushes “AMERICA FIRST” as a concept. Wouldn’t it be the irony of ironies if Trump, the “economic moron”, were to be the cause of the DOWNFALL of the AMERICAN EMPIRE, were he to be the cause of the collapse of AMERICAN HEGEMONY? — © Mark Alexander

Trump’s Plan to Pack the Fed With Loyalists

THE NEW YORK TIMES: Overhauling the central bank’s Board of Governors would grant the president greater sway over the Federal Reserve, an institution that is supposed to be independent from the White House.

A watershed legal battle over the White House’s attempt to oust a sitting Federal Reserve governor has only just begun, but if President Trump gets his way, it could leave him with much more latitude to steer the central bank’s decisions on interest rates and its oversight of Wall Street.

Mr. Trump is already relishing the idea.

“We’ll have a majority very shortly,” Mr. Trump said at his latest marathon cabinet meeting about the Fed’s powerful seven-person Board of Governors. “So that’ll be great.”

Mr. Trump plans to appoint loyal individuals to that board, and he would need to fill just one more seat for the balance of power to tip further in his favor. If that happens, it would give the president immense sway over an institution that is supposed to operate independently from the White House. » | Colby Smith | Colby Smith covers the Federal Reserve.| Sunday, August 31, 2025

Why Trump Wants Control over the Fed

This is why Trump wants to control the Fed and the money supply.

Trump's Fed Attack Could Cause 'Economic Meltdown' | The Story

Aug 29, 2025 | President Trump announced on Truth Social this week that he had fired Federal Reserve board member Lisa Cook.

While most people had no idea who she was, her sacking could have a massive impact. The move is seen as part of the continued politicisation of the Fed, the US’s independent central bank and some economists fear it could be the start of a journey towards economic meltdown in America with global repercussions.

This podcast was brought to you thanks to the support of readers of The Times and The Sunday Times.

Guest: Mehreen Khan,  Economics Editor, The Times.
Host: Manveen Rana.

Trump Takes Down 'Enemy' Lisa Cook with Fraud Accusations

Aug 27, 2025 | “It seems a lot more to do with going after people who oppose the president rather than a real sense of government concern with the issue of mortgage fraud.”

The Federal Reserve governor, Lisa Cook, has been “targeted by a member of the Trump administration who has targeted a lot of Trump’s enemies with the same accusation”, says The Wall Street Journal’s Molly Ball.

Trump Moves to Fire Fed Governor Lisa Cook in Escalating Attack on Bank’s Independence

THE GUARDIAN: Departure of Cook, first Black woman to sit on central bank’s board, would allow US president to put forward a replacement

Donald Trump has said he is firing the Federal Reserve governor, Lisa Cook, over allegations she committed mortgage fraud, in an extraordinary move that marks the latest escalation in the US president’s attack on the central bank’s independence.

Trump wrote to Cook on Monday, telling her that he was removing her from her position “effective immediately”, based on the allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence.

Cook responded several hours later in a statement emailed to reporters through the law office of the lawyer Abbe Lowell, saying of Trump that “no cause exists under the law, and he has no authority” to remove her from the job to which she was appointed by Joe Biden in 2022.

She said: “I will continue to carry out my duties to help the American economy.“

Lowell said Trump’s “demands lacked any proper process, basis or legal authority”, adding: “We will take whatever actions are needed to prevent his attempted illegal action.” » | Callum Jones in New York | Tuesday, August 26, 2025

THE NEW YORK TIMES: Trump, in a Move With Little Precedent, Says He Is Firing a Fed Governor: President Trump told Lisa Cook that he had found sufficient cause “to remove you from your position.” Ms. Cook and her lawyer said they would fight the firing. »

Profile: Jerome ‘Jay’ Powell, Federal Reserve Chair

THE OBSERVER: If anyone can stand up to Trump, it’s the affable and decisive Fed chair

Jackson Hole, with its stunning views of the Grand Teton mountains, is one of America’s most beautiful escapes. For the past few days, it has been home to Jerome “Jay” Powell and the best friends an embattled Federal Reserve chairman can have – his fellow central bankers. Andrew Bailey, governor of the Bank of England, was there, as was Christine Lagarde, president of the European Central Bank, not least to reassure Powell that the central bankers union has his back as he battles to save the independence of the Fed from an increasingly aggressive president.

Enjoying Wyoming’s fresh air and outdoor pursuits, such as white-water rafting, while debating weighty economic topics with fellow central bankers sure beats donning a hard hat to give an angry Donald Trump a tour of refurbishment work in the Fed building, as Powell did the other week on live TV. Alleging cost overruns of billion of dollars, Trump was fishing for a reason to fire him “for cause”, the only grounds a president can use to dismiss a Fed chair, the 1935 Banking Act having legally protected the independence of the Federal Reserve system from White House interference.

The 72-year-old Fed chair stole the show and lived to fight another day with a carefully curated fact-check of Trump’s wildly wrong numbers. » | Matthew Bishop | Sunday, August 24, 2025

Fed Holds Interest Rates Steady amid Uncertainty over Trump’s Impact on Economy

THE GUARDIAN: Fed chair declines to provide ‘any response or comment whatsoever’ on president’s public demands for lower rates

Federal Reserve officials decided on Wednesday to hold interest rates steady as uncertainty over Donald Trump’s impact on the US economy looms and inflation remains above the central bank’s target levels.

This is the first time Fed policymakers have met since the president, who has made clear he wants rates to fall, returned to the White House. The benchmark interest rate now sits at a range of 4.25% to 4.5%.

Jerome Powell, the Fed chair, declined to provide “any response or comment whatsoever” on the president’s public demands for lower rates. “The public should be confident that we will continue to do our work as we always have, focusing on using our tools to achieve our goals,” he said in a press conference on Wednesday. » | Lauren Aratani in New York | Wednesday, January 29, 2025

Central Bank Independence Is a Myth. They Need to Be Democratized.

Oct 30, 2019 | Gerald Epstein discusses his new book, a collection of essays on how central banking is shaped, how it shapes the economy, and how it can be made more responsive to people's needs.

Fed Raises Rates after a Pause and Leaves Door Open to More

THE NEW YORK TIMES: Federal Reserve officials raised interest rates to their highest level in 22 years, continuing their 16-month-long campaign to wrestle inflation lower by cooling the American economy.

Officials pushed rates to a range of 5.25 to 5.5 percent, their highest level since 2001, while leaving the door open to further rate increases in the statement announcing their unanimous decision. Jerome H. Powell, the Fed chair, is speaking [in the accompanying video] to journalists to explain the move — and, potentially, to offer some hint at how the central bank is thinking about its next step. (+ video) » | Jeanna Smialek | Wednesday, July 26, 2023

Global Fallout from Rate Moves Won’t Stop the Fed

THE NEW YORK TIMES: The Federal Reserve, like many central banks, sets policy with an eye on the domestic economy. Its battle to control prices is causing pain abroad.

The Federal Reserve has embarked on an aggressive campaign to raise interest rates as it tries to tame the most rapid inflation in decades, an effort the central bank sees as necessary to restore price stability in the United States.

But what the Fed does at home reverberates across the globe, and its actions are raising the risks of a global recession while causing economic and financial pain in many developing countries.

Other central banks in advanced economies, from Australia to the eurozone, are also lifting rates rapidly to fight their inflation. And as the Fed’s higher interest rates attract money to the United States — pumping up the value of the dollar — emerging-market economies are being forced to raise their own borrowing costs to try to stabilize their currencies to the extent possible.

Altogether, it is a worldwide push toward more expensive money unlike anything seen before in the 21st century, one that is likely to have serious ramifications. » | Jeanna Smialek and Alan Rappeport | Friday, October 7, 2022

The Dollar Is Strong. That Is Good for the U.S. but Bad for the World.

THE NEW YORK TIMES: The Federal Reserve may have no choice but to wage a relentless inflation fight, but countries rich and poor are feeling the pain of plunging currencies.

The Federal Reserve’s determination to crush inflation at home by raising interest rates is inflicting profound pain in other countries — pushing up prices, ballooning the size of debt payments and increasing the risk of a deep recession.

Those interest rate increases are pumping up the value of the dollar — the go-to currency for much of the world’s trade and transactions — and causing economic turmoil in both rich and poor nations. In Britain and across much of the European continent, the dollar’s acceleration is helping feed stinging inflation.

On Monday, the British pound touched a record low against the dollar as investors balked at a government tax cut and spending plan. And China, which tightly controls its currency, fixed the renminbi at its lowest level in two years while taking steps to manage its decline.

In Nigeria and Somalia, where the risk of starvation already lurks, the strong dollar is pushing up the price of imported food, fuel and medicine. The strong dollar is nudging debt-ridden Argentina, Egypt and Kenya closer to default and threatening to discourage foreign investment in emerging markets like India and South Korea.

“For the rest of the world, it’s a no-win situation,” said Eswar Prasad, an economics professor at Cornell and author of several books on currencies. At the same time, he said, the Fed has no choice but to act aggressively to control inflation: “Any delay in action could make things potentially even worse.” » | Patricia Cohen, Reporting from London | Monday, September 26, 2022

Fed Makes Another Big Rate Increase

THE NEW YORK TIMES: The Federal Reserve raised rates by three-quarters of a point and projected a more aggressive path ahead, suggesting that borrowing costs would be increased to 4.4 percent by the end of the year.

Federal Reserve officials ramped up their battle against the fastest inflation in 40 years on Wednesday, ushering in a third straight supersize rate increase while projecting a more aggressive path ahead for monetary policy, one that would lift interest rates higher and keep them elevated longer.

Central bankers raised their policy interest rate by three-quarters of a percentage point, boosting it to a range of 3 to 3.25 percent. The federal funds rate was set at near zero as recently as March, and the Fed’s increases since then have made for its fastest policy adjustment since the 1980s.

Even more notably, policymakers predicted on Wednesday that they will raise borrowing costs to 4.4 percent by the end of the year — suggesting that they could make another supersize rate move, followed by a half-point adjustment. Officials estimated that rates will climb to 4.6 percent by the end of 2023, up from an estimate of 3.8 percent in June, when they last published estimates. » | Jeanna Smialek | Wednesday, September 21, 2022

Why the Fed Can Keep Rates ‘Pretty Aggressively’ in the Short Term: Economist

Zach Griffiths, Wells Fargo Senior Macro Strategist, and Jeanette Garretty, Robertson Stephens Wealth Management Chief Economist, join Yahoo Finance Live to break down consumer positions amid rising inflation and the latest Fed interest rate hike and the significance of the latest unemployment rate reading.

The Federal Reserve Raises Interest Rates by 0.75 of a Percentage Point.

THE NEW YORK TIMES: The Federal Reserve raised interest rates by three-quarters of a percentage point on Wednesday, its biggest move since 1994, as the central bank ramps up its efforts to tackle the fastest inflation in four decades.

The big rate increase, which markets had expected, underlined that Fed officials are serious about crushing price increases even if it comes at a cost to the economy.

Officials predicted that the unemployment rate will increase to 3.7 percent this year and to 4.1 percent by 2024, and that growth will slow notably as policymakers push borrowing costs sharply higher and choke off economic demand. » | Jeanna Smialek | Wednesday, June 15, 2022

Federal Reserve announces biggest interest rate hike since 1994: Fed confirms 0.75 percentage-point increase as Americans across country hit hard by rising prices and shortages of key items »

Praise Ye the Lord! – Mark

Soaring US Inflation Prompts Fed to Hike Up Interest Rates | DW News

Jan 27, 2022 • The US Federal Reserve will begin raising interest rates in March. It's a departure from pandemic-era polices that have been in place since March, 2020, pegging the benchmark rate to zero. Fed Chairman Jerome Powell says the move is designed to temper economic growth. Americans have seen decades-high inflation rates lately, eating into wage gains and household budgets. The Fed Chairman added that he thinks there is quite a bit of room to raise rates "without threatening the labor market."

Fed Eyes 3 Rate Increases in 2022; Slows Stimulus as Prices Rise

THE NEW YORK TIMES: Federal Reserve officials suggested as many as three interest rate increases in 2022 as the economy heals and inflation persists.

“I think the risk of higher inflation has increased,” Jerome H. Powell, the Federal Reserve chair, said while testifying before Congress last month. | Sarahbeth Maney/The New York Times
Federal Reserve policymakers on Wednesday said they will cut back on their stimulus more quickly at a moment of rapid inflation and strong economic growth, capping a challenging year with a pronounced policy pivot that could usher in higher interest rates in 2022.

A policy statement and a fresh set of economic projections released by the central bank detailed a more rapid end to the monthly bond-buying that the Fed has been using throughout the pandemic to keep money chugging through markets and to bolster growth.

Officials are slashing their purchases by twice as much as they had announced last month, a pace that would put them on track to end the program altogether in March. That decision came “in light of inflation developments and the further improvement in the labor market,” according to the policy statement.

Fed Chair Jerome H. Powell, speaking at a news conference following the Fed’s meeting, said a “strengthening labor market and elevated inflation pressures” prompted the central bank to speed up the reductions in asset purchases. » | Jeanna Smialek | Wednesday, December 15, 2021