G20 Nations Stress Central Bank Independence Critical
G20 Finance Ministers Endorse Central Bank Independence
The G20’s first communique under South Africa’s presidency stressed that central banks remain independent in the face of President Trump’s frequent attacks on Federal Reserve Chair Jerome Powell.
Key Messages
- Central banks commit to price stability and data‑dependent policy‑adjustments.
- Independence is essential to achieving their core objectives, the communique states.
- The United States signed the statement, demonstrating a rare bloc consensus amid trade tensions.
Trump’s Criticism of Powell
President Trump repeatedly lambasted Powell, calling him a “numbskull” and “moron.” He insisted that the Fed should “boost the US economy by cutting rates from 4.25 to 4.5 percent.”
US Treasury Representation
US Treasury Secretary Scott Bessent skipped the Durban meeting; the US was instead represented by acting undersecretary for international affairs Michael Kaplan.
G20 Trade Policy Concerns
- The US has introduced drastic tariffs, raising duties from 10 % to higher rates for dozens of economies, including the EU and a 50 % copper duty.
- Travel from Pretoria to Johannesburg will see Washington chair the G20 summit in November.
- Officials cited the need for greater WTO reform to stay relevant.
Global Challenges Highlighted
The G20 emphasized the necessity of a rules‑based multilateral trading system and encouraged cooperation to resolve trade tensions. IMF remarks on policy uncertainty underscored the urgency of these discussions.
Tax and Development Issues
Discussions continued on a global minimum tax of 15 %, aiming to curb companies’ tax evasion. Oxfam warned that inaction could be deemed a betrayal, calling for timely tax measures on the wealthy and excessive fossil‑fuel profits.
