Central bank independence under pressure: What does this mean for the global economy?

Central bank independence under pressure: What does this mean for the global economy?

International Support for the US Federal Reserve Amid Political Pressure  Central bank governors from around the world issued a joint statement supporting US Federal Reserve Chairman Jerome Powell as he faces a criminal investigation and mounting pressure from US President Donald Trump to resign early. This strong support from top central bankers—from Australia, Brazil, Canada, Europe, New Zealand, South Africa, South Korea, the UK, and others—stems from the impact of US interest rate decisions on the global economy. Central bank independence is the global norm that has helped prevent a repeat of the high and persistent inflation of the 1970s. Reorienting monetary policy to a politician, especially one as unpredictable as Trump, is undesirable. Trump has repeatedly attacked the Federal Reserve and expressed his desire to fire Powell. However, the law stipulates that the president can only remove the Fed chairman for "good cause." The US central bank is currently facing a crimin…