G20 nations endorse central bank independence as essential.
G20 Ministers Back Central Bank Independence Amid Trump’s Attacks on Powell
At a finance‑minister session in Durban, the G20 reaffirmed that central banks must stay autonomous, a rare consensus that also included the United States.
Key Points from the Joint Declaration
- Price stability remains a top priority, and policy tweaks will continue to be driven by data.
- Central‑bank independence is essential for reaching that objective.
- The statement noted the world’s economy faces “heightened uncertainty” due to wars, geopolitical tensions, and trade frictions.
Trump’s Remarks and the US Treasury’s Representation
President Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting rates swiftly, labeling him a “numbskull” and a “moron.” He also suggested Powell could be fired for alleged “fraud” linked to a $3 million renovation project at the Fed headquarters.
The US Treasury Secretary Scott Bessent did not attend the two‑day meeting. Instead, Washington was represented by Acting Undersecretary for International Affairs Michael Kaplan.
G20 Composition and Global Economic Context
- Members include 19 nations and two regional organisations, covering more than 80 % of global economic output.
- The group has been scrambling to respond to dramatic policy shifts by the United States, a trend that has upended trade rules since Trump’s return to the White House.
In summary, the G20 ministers issued a joint declaration that underscores the critical importance of central‑bank independence, while also acknowledging the complex challenges confronting the global economy.
