For several weeks, Donald Trump's statements against the current president of the Fed Jerome Powell have been creating bustle in the financial markets. This unprecedented pressure pushed the Bank of International Regulations (BRI) to intervene publicly. The goal: to defend the independence of central banks, an essential pillar for the stability of the world economy.
In short
- BRI alerts political risks threatening the independence of world central banks.
- Trump's attacks against Powell weaken financial stability and the global economy.
BRI: Last bulwark in the face of political risk on the global economy
In its annual report published on Sunday, the BRI alerts on The growing risks of political interference in interest rate management. Without directly appointing Donald Trump, the Basel -based institution insists on the vital role of an independent monetary policy. According to her, a central bank must be able to do what it deems necessary, even if this does not correspond to the desires of the government.
More explicitly, recent tensions come from Trump's verbal attacks against Powell. The latter described the current president of the Fed as “beast” and “stubborn” on the Truth Social network. The American president wants a rapid drop in rates, despite persistent inflation and the uncertain impact of customs duties. These pressures weaken financial stability and generate disturbing volatility for investors.
In this sense, the BRI underlines in his report that central banks have to face a “delicate arbitration”. The dilemma? Support economic growth by low rates or preserve monetary value in increasing public debt.
What impact on cryptocurrencies and the real economy?
L'FED financial independence attack does not only concern the United States. It could also upset the global economy, including Crypto markets.
A Fed subject to political power would actually create a dangerous precedent, threatening the credibility of economic measures. For Bitcoin or digital active holders, this uncertainty could strengthen the thesis of an active refuge out of the classic monetary system.
Conversely, An economic crisis triggered By loss of confidence in the Fed could also cause a general drop in risky assets. Everything will depend on the ability of central banks to resist political pressures and to navigate in this phase of economic uncertainty.
The BRI therefore plays the card of caution to protect the global economy. Faced with Trump's ambitions, monetary independence may well become one of the major geopolitical issues of 2025.
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