Twelve top central bankers defend Fed’s Jerome Powell over DoJ investigation; oil hits two-month high as Trump threatens Iran’s trading partners – as it happened

Newsflash: Eleven of the world’s top central bankers have released a statement of support for Federal Reserve chair Jerome Powell, after the US Department of Justice opened a criminal investigation into him.In an unprecedented move, top central bank chiefs including the Bank of England’s Andrew Bailey, and Christine Lagarde of the European Central Bank, have backed Powell, and warned against undermining central bank independence.The heads of the Swedish, Denmark, Swiss, Australian, Canadian, South Korean, and Brazilian central banks have also signed, as have two top officials at the Bank of International Settlements (known as the “central bank for central banks”).Others may yet sign the letter too, Reuters suggested this morning.The central bank chiefs say:We stand in full solidarity with the Federal Reserve System and its Chair Jerome H

US inflation held firm in December amid pressure on Trump over cost of living

US inflation held firm last month as Donald Trump faces mounting pressure over the cost of living for millions of Americans.The closely watched consumer price index rose 2.7% in the year to December, in line with the previous month, according to official data published on Tuesday morning, ahead of a speech by the US president on the economy.The latest reading was broadly in line with economists’ expectations last month, and significantly above the Federal Reserve’s target for 2% inflation. Food prices and housing costs lifted the index higher in December

Quarter of developing countries poorer than in 2019, World Bank finds

A quarter of countries in the developing world are poorer than they were in 2019 before the Covid pandemic, the World Bank has found.The Washington-based organisation said a large group of low-income countries, many in sub-Saharan Africa, had suffered a negative shock in the six years to the end of last year.The bank said the group included Botswana, Namibia, the Central African Republic, Chad and Mozambique. South Africa and Nigeria, which has a fast-growing population, also failed to raise average incomes over the period, despite growing by 1.2% and 4

Global central banks offer ‘full solidarity’ to US Fed’s Powell amid Trump threats

Global central banks have issued an extraordinary joint statement offering “full solidarity” to the US Federal Reserve chair, Jerome Powell, in the face of the latest threat to his independence from Donald Trump’s White House.“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” the statement said.It was signed by 10 central bank governors including the Bank of England governor, Andrew Bailey, and the chair of the European Central Bank, Christine Lagarde. It was coordinated by the Basel-based Bank for International Settlements, which added its chair and general manager to the signatories

Guinness and Johnnie Walker owner Diageo ‘could sell Chinese assets’

Diageo’s new boss, Dave Lewis, has barely started in the role, and the maker of Guinness and Johnnie Walker is already reportedly considering selling off its Chinese assets to trim down its portfolio.The world’s largest spirits maker, whose other brands include Smirnoff vodka, Captain Morgan rum and Don Julio tequila, is working with Goldman Sachs and UBS to review its operations in China, where sales have been falling, according to Bloomberg News.Diageo’s assets in the country include a 63%-plus stake in Shanghai-listed Sichuan Swellfun, which distributes the distilled spirit Baiju. The banks have been sounding out initial interest from Chinese strategic buyers and private equity.Shares in Sichuan Swellfun have dropped 14% in the past year, giving the Chengdu-based company a market value of 19

Jerome Powell: steely Fed chair standing firm in face of Trump’s threats

There are often few surprises with Jerome Powell. At his handful of public appearances each month, the US Federal Reserve chair always sports the same softly stern expression. His voice, typically dispassionate and near-monotone, never wavers.As one of the most powerful officials in the world, commanding a platform that has the ability to move global markets with a few words, Powell is often reserved in a way that fails to yield soundbites in this social media era: boring, even.That changed on Sunday night