Backs Powell: 'Central bank independence is essential'

MUMBAI: RBI governor Sanjay Malhotra voiced support for US Fed chief Jerome Powell, who faces growing political pressure in the US, calling central bank autonomy essential. "Maintaining the independence of the central bank is very important," he said after an event here.

Malhotra cited a recent G20 meeting where Powell's remarks on independence drew rare applause from fellow governors. Powell has faced repeated attacks from Trump over rate policy and Fed spending, raising concerns about institutional credibility. Malhotra's comments align with a broader consensus among central bankers that insulating monetary policy from political interference is key to preserving stability and inflation control.