Central bank independence is a cornerstone of financial stability and
price stability, and that's why it's such an essential element
of serving our people.
Both my friend Jean Claude Trichet, ex president of the
ECB, and JP Morgan CEO Jamie Dimon expressed very clearly
the views prevalent in the global central banking community.
We stand in full solidarity and support of the Federal
Reserve and Chair, say Powell, and want to defend central
bank independence because that is crucial for price stability, and
price stability is crucial for sustainable growth and high employment
both in the United States and across the world.
So, so just revisiting what you've said and my initial
question, Ollie, how dangerous is it for the world's most
systemically important currency and bond market if indeed the independence
is undermined?
It is certainly dangerous if the independence of the Federal
Reserve is or where to be undermined.
That would mean that we could see a kind of
structural rise of inflation and because of the systemic importance
of the United States in the world economy and the
global financial cycle being still dominated by U.S., dollar and
US developments, that would certainly have global ramifications.
And of course, then all of us in the rest
of the world, including Europe, would have to take that
into account in our own decisions to safeguard price stability
and economic stability more broadly.
Sorry, Ollie, I'm just going to go there one more
time.
Do you think there is a danger for the US
bond market?
And actually there could be unseen ramifications of this action
from the president?
Normally this kind of actions or threats to central bank
independence may undermine credibility of financial markets and also bond
markets.
And that's why in my view, it is important also
for the US bond markets and U.S.
financial stability that central bank independence, monetary independence is maintained.
It's important for the US and it's important for for
the whole world.