Central bankers from major economies have publicly affirmed alignment with Federal Reserve Chair Jerome Powell’s approach to monetary policy, signaling coordinated resolve amid persistent inflation pressures and uncertain economic growth. The consensus underscores confidence in the Fed’s strategy despite divergent domestic conditions.
- Fed Chair Jerome Powell’s inflation-focused policy has received backing from central banks in the eurozone, UK, Japan, and Switzerland.
- U.S. core PCE inflation at 3.4% in December 2025 remains above the Fed’s 2% target.
- ECB inflation at 2.9%, UK CPI at 3.1%, and Japan’s 1.2% growth highlight global inflation persistence.
- Fed balance sheet reduction has removed $1.4 trillion in liquidity since 2023.
- S&P 500 rose 1.8% and 10-year Treasury yield fell to 4.12% post-statement.
- Expected 5.3% capital expenditure growth in tech and real estate sectors in 2026.
Central bank leaders across advanced economies have issued a rare joint statement affirming their commitment to maintaining policy discipline in tandem with the U.S. Federal Reserve. The declaration, released on January 13, 2026, reflects a unified stance on inflation control, with officials from the European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank expressing full solidarity with Chair Jerome Powell’s cautious approach to rate cuts. The collective message emphasized that inflation remains above target in multiple jurisdictions, with the U.S. core PCE inflation at 3.4% in December 2025—still above the Fed’s 2% target. The ECB reported a harmonized inflation rate of 2.9% for the eurozone, while the UK’s CPI stood at 3.1%, reinforcing the need for sustained restraint. These figures underscore the global consensus that premature easing could jeopardize price stability. Despite differing domestic trajectories—Japan’s economy expanding at 1.2% annualized in Q4 2025, while Germany faced a 0.3% contraction—the central bankers agreed that monetary policy should remain data-dependent. The statement noted that the Fed’s balance sheet reduction, which has already removed $1.4 trillion in liquidity since 2023, should continue at a measured pace to avoid market distortions. Financial markets reacted positively, with the S&P 500 rising 1.8% and the 10-year U.S. Treasury yield dropping to 4.12%—its lowest level since September 2025. Bond markets in Europe and Japan saw similar tightening in yields, reflecting reduced uncertainty around coordinated policy. The move has bolstered confidence among institutional investors, particularly in rate-sensitive sectors such as real estate and technology, where capital expenditure is expected to rise by an estimated 5.3% in 2026.