G20 Finance Chiefs Agree Central Bank Independence in Durban

At their recent meeting in Durban, South Africa, finance leaders from the Group of Twenty (G20) nations strongly emphasized the critical importance of central bank independence in maintaining price stability amid ongoing geopolitical and trade tensions. The communique, the first since October 2024 and preceding President Donald Trump's election and ensuing tariff conflicts, reaffirmed central banks' commitment to data-dependent policy adjustments aligned with their mandates. The meeting occurred under the shadow of President Trump's persistent pressure on Federal Reserve Chair Jerome Powell to lower interest rates, which has unsettled global financial markets. Despite the absence of U.S. Treasury Secretary Scott Bessent, the U.S. was represented by Michael Kaplan, acting under secretary of the Treasury for international affairs. In addition to central bank independence, the G20 communique highlighted the need for reform of the World Trade Organization and the importance of addressing debt issues in low- and middle-income countries, reflecting a broader agenda promoting solidarity, equality, and sustainability. This consensus marks a significant achievement for the G20, underscoring cooperation on strategic macroeconomic challenges despite the non-binding nature of their statements.