President Donald Trump has been pushing for the central bank to drop cash rates.
The letter published on Wednesday (NZT), and signed by 14 central bankers so far, said Powell had served with integrity.
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell. The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.
“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him,” the letter said.
CNN overnight reported Powell had kept quiet and remained loyal for years despite Trump calling him “every name and used every insult in the book, repeatedly threatening to fire him”, but the subpoenas had forced his hand.
Powell in a two-minute video on Sunday characterised the prosecution as a backlash against the central bank for serving the American public “rather than following the preferences of the President”.
Others to have signed the support letter include the chairs of central banks of Europe, England, Sweden, Denmark, Switzerland, Norway, Australia, Canada, South Korea, Brazil, South Africa, the board of directors for the Bank of International Settlements, and the general manager of the Bank for International Settlements.
It noted more central bankers may add their names over time.
– RNZ
