Statement in Support of Fed Chair Amid 'Trump Conflict'
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), publicly expressed her support on January 15 for Jerome Powell, Chair of the Federal Reserve (Fed), who is under investigation by the Donald Trump administration over the costs of renovating the Fed headquarters.
In an interview with Reuters that day, Georgieva emphasized the importance of maintaining central bank independence and stated that she respects Chair Powell’s expertise.
Kristalina Georgieva, Managing Director of the International Monetary Fund. Photo by Reuters-Yonhap News
When asked about the recent letter of support for Chair Powell signed by major central bank governors, she responded, "I have worked with Chair Powell. He is an outstanding professional and a person of great character. I believe his reputation among his peers speaks for itself."
Georgieva added that the IMF closely monitors monetary and financial stability as well as the institutional soundness of each country, and that, in particular, the IMF pays great attention to the Fed because the dollar serves as the world's key currency.
She stated, "It is encouraging to see that the Fed is recognized as a valuable asset to Americans and an important institution for the world."
In a recently released video, Chair Powell revealed that he is facing investigation and prosecution by the Trump administration regarding the costs of renovating the Fed headquarters, and criticized the administration for threatening the Fed’s independence. He asserted that this investigation is an unprecedented 'pretext' to pressure him for not complying with President Trump's demands for interest rate cuts.
President Trump has publicly criticized Chair Powell’s interest rate policies and leadership, pressuring him to resign. Former Fed chairs, figures in the economic sector, Treasury Secretary Scott Bessent, and some members of the Republican Party have all expressed concerns about this situation.
On this day, Georgieva is visiting Kyiv, the capital of Ukraine, to meet with President Volodymyr Zelensky and others to discuss financial support measures for Ukraine. She stated that she will request board approval within a few weeks for a new $8.1 billion loan program for Ukraine.
Regarding Venezuela, she said that the IMF has been monitoring the Venezuelan economy and is ready to provide support. However, she noted that the IMF’s major member countries must officially recognize Venezuela’s current leadership and that Venezuela must request assistance from the IMF.
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