Trump attacks Powell again on budget for new seat. ECB and central governors in support of Fed chairman
Donald Trump is back to attacking Fed Chairman Jerome Powell after the investigation against him over the restructuring of the US central bank's headquarters: 'Well, he's billions of dollars over budget. So he's either incompetent or he's corrupt. I don't know what it is, but he's certainly not doing a very good job,' he said at the White House, before leaving for Detroit where he will give an economic speech.
After the criminal investigation against Fed Chairman Jerome Powell comes a joint statement in support of the US central bank's number one. "We stand in full solidarity with the Federal Reserve System and with its chairman Jerome H. Powell. Central bank independence is a cornerstone of price, financial and economic stability in the interests of the citizens we serve."
So says a statement of the world's leading central bankers. The statement is 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 the Sveriges Riksbank; Christian Kettel Thomsen, Chairman of the Board of Governors of the Danmarks Nationalbank; Martin Schlegel, Chairman of the Governing Council of the Swiss National Bank; Michele Bullock, Governor of the Reserve Bank of Australia; Tiff Macklem, Governor of the Bank of Canada; and Chang Yong Rhee, Governor of the Bank of Korea.The statement also bears the signatures of Gabriel Galípolo, Governor of the Banco Central do Brasil; François Villeroy de Galhau, Chairman of the Board of Directors of the Bank for International Settlements; and Pablo Hernández de Cos, Director General of the Bank for International Settlements.
'It is therefore essential,' the note continues, 'to preserve that independence, with full respect for the rule of law and democratic accountability. President Powell has acted with integrity, focusing on his mandate and with an unwavering commitment to the public interest. He is a valued colleague, held in the highest esteem by all who have worked with him'.
JPMorgan-Chase CEO Jamie Dimon also defended the Federal Reserve after the Justice Department investigation, saying that "anything that undermines" the central bank's independence "is not a good idea". Dimon, speaking to reporters after the release of JPMorgan Chase's fourth quarter results, said that political interference with the Fed would cause inflation and interest rates to rise, contrary to Donald Trump's stated goal. Dimon made it clear that he does not 'agree with everything the Fed has done', but 'I have enormous respect for Powell as a person'.
