G20 nations agree central banks' independence crucial

The G2O finance ministers stressed Friday that central banks must remain independent, after months of escalating attacks by US President Donald Trump on Federal Reserve boss Jerome Powell.

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It was the first communique under South Africa's G20 presidency and marked a rare consensus reached by a bloc jolted by the drastic trade policies of its richest member, the United States.

“Central banks are strongly committed to ensuring price stability, consistent with their respective mandates, and will continue to adjust their policies in a data-dependent manner,” the group said after a finance ministers’ meeting in South Africa.

“Central bank independence is crucial to achieving this goal,” it said in the statement, also signed by the United States.

Trump has repeatedly lashed out at Powell for not lowering interest rates more quickly, calling the central banker a “numbskull” and “moron”.

US Treasury Secretary Scott Bessent did not attend the two-day meeting in the port city of Durban, with Washington instead represented by acting undersecretary for international affairs Michael Kaplan.

Bessent also skipped a similar meeting in February and US Secretary of State Marco Rubio snubbed a meeting for G20 foreign ministers.

Trump charges that the central bank could help save the country debt-servicing costs by cutting rates from the current range, which is between 4.25 per cent and 4.50 per cent.