Norges Bank Governor Ida Wolden Bache has joined other central bank bosses around the world in signing a statement of support of US Federal Reserve Chairman Jerome Powell. Bache says it’s “correct and important” to support the independence of both Powell and the US central bank itself.
“I have great respect for Powell,” Bache told Norwegian newspaper Dagens Næringsliv (DN). “He is a very competent economist and a person with high integrity.” Powell, however, has been subjected to ongoing pressure from US President Donald Trump to lower US interest rates, even though politicians are supposed to respect their central banks’ independence.
When the Trump Administration also announced an investigation into a remodelling project at the Fed, and threatened legal action against Powell, Bache and 11 other central bank bosses issued a declaration of support for Powell and how central banks are supposed to be run.
“We believe it is correct and important to stress the importance of center bankers’ independence, within the mandate of the authorities,” Bache told DN. “The American central bank is an important institution in the international financial system.” Any loss of confidence in it and its decision, she noted, could affect international financial markets.
NewsinEnglish.no staff
