WASHINGTON, Jan 12 (Reuters) – German Finance Minister Lars Klingbeil on Monday said that central bank independence was a “clear line” for him, when asked about the U.S. Justice Department’s probe into Federal Reserve Chair Jerome Powell.
“We in Germany attach great importance to the independence of central banks,” Klingbeil said in Washington. “For me, as finance minister, this is a clear line.”
President Donald Trump‘s administration has ramped up its pressure campaign on the Federal Reserve, threatening to indict Powell over comments to Congress about a building renovation project, an action Powell called a “pretext” to gain more influence over interest rates Trump wants cut dramatically.
The finance minister, who defined himself as “very transatlantic”, said Germany is using every possibility to stay in dialogue with American partners but discussions are becoming more difficult and differences are getting larger.
“I believe it is bad for the world if Europe and the U.S. are divided from one another, and that is why I am here, to send a clear signal: We want cooperation, we want collaboration,” said Klingbeil.
The German minister is in Washington for a meeting of finance ministers from the Group of Seven advanced economies, in which Australia, Mexico, South Korea and India will also participate.
(Reporting by Maria Martinez, Writing by Friederike Heine; editing by Matthias Williams)
