Central Bank Independence Under Spotlight

In a strong show of solidarity, RBI governor Sanjay Malhotra has publicly supported US Federal Reserve chief Jerome Powell, who is currently facing increasing political scrutiny in the United States. Malhotra emphasized the critical importance of maintaining central bank autonomy for economic stability and inflation control.

International Support for Powell

During a recent G20 meeting, Powell's advocacy for central bank independence was met with rare applause from his peers, highlighting a global consensus on the issue. This comes as Powell faces criticism from former President Trump over the Fed's rate policy and spending decisions, raising concerns about the institution's credibility.

The Importance of Autonomy

Malhotra's comments reflect a broader agreement among central bankers that shielding monetary policy from political interference is essential for preserving financial stability and effectively managing inflation.