Powell Secures Broad Central Banker Backing Amid Political Pressure

Federal Reserve Chair Jerome Powell has solidified his position within the global central banking community after receiving unanimous endorsement from senior officials at the International Monetary Fund's annual meeting in Washington, D.C. The consensus came amid mounting pressure from President Donald Trump, who has publicly criticized the Fed’s recent interest rate decisions and urged a shift toward more accommodative monetary policy. The backing was formalized through a closed-door session attended by governors from 12 major economies, including the European Central Bank, Bank of Japan, and Bank of England. Participants affirmed that current monetary policy remains appropriate given inflation trends and labor market resilience. Specifically, the group noted that headline CPI inflation stood at 3.4% year-over-year in December 2025, while core inflation remained stable at 2.9%, reinforcing the rationale for maintaining rates at 5.25%-5.50%. Market indicators reflected the strengthened confidence: the CME Group’s FedWatch Tool showed a 76% probability of no rate change at the upcoming FOMC meeting on February 18, up from 65% a week earlier. Treasury yields dipped slightly, with the 10-year note falling to 4.11% from 4.23%, signaling reduced expectations for near-term easing. Financial institutions and asset managers across Wall Street have responded positively, with S&P 500 futures gaining 0.7% and the VIX index declining by 9%. The move also bolstered confidence in the Fed’s ability to resist political interference, particularly as discussions continue over the potential reappointment of Powell beyond his current term, which expires in January 2027.