The president of the Central Bank of Brazil, Gabriel Galípolo, signed this Tuesday (13) the international manifesto in defense of the independence of monetary authorities and in support of the president of the Federal Reserve (FED), Jerome Powell. The initiative comes amid attacks from United States President Donald Trump, who is pushing for a faster reduction in interest rates in the country.
According to the Central Bank, the joint declaration “reaffirms the technical autonomy of institutions as a central pillar of global economic stability”, at a time of growing political tensions involving monetary policy decisions, both abroad and in Brazil.
Monetary autonomy
In the manifesto, the central bank presidents highlight that institutional independence is “fundamental to ensuring price stability and the well-being of citizens”, always respecting the rule of law, transparency and democratic responsibility.
“We stand in full solidarity with the Federal Reserve System and its Chairman, Jerome H. Powell,” the signatories say. The document also maintains that Powell has acted “with integrity, commitment to the public interest and focus on his mandate.”
By adhering to the manifesto, Galípolo positions Brazil alongside institutions such as the European Central Bank, the Bank of England and the Bank for International Settlements (BIS), an organization based in Switzerland that functions as the Central Bank of central banks. Monetary authorities from Canada, Sweden, Denmark, Switzerland, Australia and South Korea also signed the document.
Political pressure
The international support comes after Powell revealed that the US Department of Justice notified the FED with grand jury subpoenas, as part of an investigation related to the renovation of the institution’s historic buildings in Washington. The president of the FED stated that the investigation has been used as an instrument of political pressure.
“I have deep respect for the rule of law and accountability in our democracy. No one is above the law,” Powell said. “But this unprecedented action must be seen in the broader context of the government’s ongoing threats and pressure,” he added.
Powell’s term ends in May of this year.
Trump has publicly criticized the FED for keeping interest rates at a high level and defends faster cuts, despite North American inflation ending 2025 above the official target.
The release of the manifesto also comes at a sensitive time for the Brazilian Central Bank. In recent days, the liquidation of Banco Master and questions at the Federal Audit Court (TCU) reignited debates about the autonomy of the monetary authority in the country.
On Monday (12), Galípolo met with the president of TCU, Vital do Rêgo, to address the topic. Market members assess that the public defense of the independence of central banks seeks to reinforce confidence in the technical conduct of monetary policy, in a global scenario of greater volatility and uncertainty.
