The president of the Brazilian Central Bank, Gabriel Galípolo, on Tuesday (Jan. 13) signed an international manifesto in defense of the independence of monetary authorities and in support of US Federal Reserve (FED) Chair Jerome Powell. The initiative comes amid attacks by US President Donald Trump, who is pushing for a faster reduction in interest rates in the country.

According to the Central Bank, the joint statement “reaffirms the technical autonomy of institutions as a central pillar of global economic stability” at a time of growing political tensions surrounding monetary policy decisions both abroad and in Brazil.

Monetary autonomy

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In the manifesto, central bank presidents emphasize that institutional independence is “fundamental to ensuring price stability and the well-being of citizens,” never disregarding the rule of law, transparency, and democratic accountability.

By signing the text, Galípolo positions Brazil alongside institutions such as the European Central Bank, the Bank of England, and the Bank for International Settlements (BIS) – a Swiss-based body that functions as the central bank of central banks. Monetary authorities from Canada, Sweden, Denmark, Switzerland, Australia, and South Korea also signed the document.

Powell’s term ends in May this year.

On Monday (12), Galípolo met with Brazil’s Federal Court of Accounts President Vital do Rêgo to discuss the issue. Market participants believe that publicly defending the independence of central banks works to reinforce confidence in the technical conduct of monetary policy amid a global scenario of increased volatility and uncertainty.