Global central banks unite in defence of US Fed and Powell

Global central bank officials are working on a joint statement to express support for Federal Reserve Chair Jerome Powell after the Trump administration opened a criminal investigation into him.

The joint statement, which will be open for all central banks to sign, is expected to be issued under the Bank for International Settlements banner and could be issued as early as Tuesday.

The US Justice Department has issued subpoenas against Powell, threatening a criminal indictment.

This unprecedented legal move is widely seen as an escalation of President Donald Trump’s campaign against the central bank.

The heads of the world’s major central banks have issued a joint statement of “full solidarity” with the US Federal Reserve and its chairman, Jerome Powell, defending their independence amid unprecedented political pressure.

The statement declared it “critical to preserve” the independence of central banks.

It comes as us prosecutors have issued subpoenas against Powell, threatening a criminal indictment.

This unprecedented legal move is widely seen as an escalation of President Trump’s campaign against the central bank.

Powell issued a rare public rebuke on Sunday, vowing to continue setting monetary policy “without political fear or favor.” Progress in the fight to throttle back inflation appeared to stall in December amid price pressures from groceries, dining out, utility gas, clothing, and other categories of consumer spending.

Reference Sources

1. gmanetwork - Global central banks work on statement in solidarity with Fed’s Powell —report
2. abc - Treasury Secretary Bessent not happy about investigation into Powell, conveyed concerns to Trump: Sources
3. thesunmy - Global central banks unite in defence of US Fed and Powell
4. standard - Bank of England governor in extraordinary clash with Donald Trump over future of America's top banker
5. cnbc - Here’s the inflation breakdown for December 2025 — in one chart

China’s trade surplus hits record $1.2tn in 2025

China's annual trade reached a new historical high in 2025, surpassing 45 trillion yuan for the first time, with exports rising 6.1% despite a challenging global environment.

Vice Customs Minister Wang Jun announced the record figure at a press conference, highlighting resilient global demand for Chinese goods. Exports, a traditional driver of the economy, rose 6.1% from the previous year. Imports saw a more modest increase of 0.5%, according to official customs data.

China's trade surplus surged to a record of almost $1.2Tn in 2025, as exports to other countries made up for slowing shipments to the United States. In December 2025, China's exports climbed 6.6% from the year before in dollar terms, better than economists' estimates and higher than November's growth rate of 5.9% Year-On-Year. Imports rose 5.7% in dollars last month on a year earlier, also far outpacing analyst expectations of 0.9% growth and the previous month's figure of 1.9%.

The full-year trade surplus exceeded $1Tn for the first time, beating 2024's record figure of $993Bn.

China's monthly export surpluses passed $100Bn seven times last year - a sign that Trump's tariff campaign has barely affected its overall trade with the rest of the world.

Reference Sources

1. thesunmy - China’s 2025 trade hits record high despite US tariff pressure
2. jakartaglobe - China Books A Record $1.2 Trillion Trade Surplus in 2025 Despite Trump Tariffs
3. ft - China’s trade surplus hits record $1.2tn in 2025
4. bernama - China's Foreign Trade Up 3.2 Per Cent In 2025 To Record US$6.35 Trln
5. bbc - China announces record trade surplus despite Trump tariffs

Japan’s Sanae Takaichi to call snap election

Japanese Prime Minister Sanae Takaichi plans to dissolve the House of Representatives for a snap general election, aiming to capitalise on strong public support for her government.

Her cabinet is enjoying an approval rating of around 70%, but her ruling bloc only has a slim majority in the powerful lower House of Parliament, hindering its ability to push through her ambitious policy agenda.

Takaichi told senior officials of the ruling bloc on Wednesday that she plans to announce her intention on Monday to dissolve the House of Representatives for a snap general election.

The all-important lower Chamber of the Diet is set to be dissolved early in the ordinary diet session to be convened January 23, Takaichi said in a meeting with Hirofumi Yoshimura, leader of the Japan Innovation Party, the coalition partner of the ruling Liberal Democratic Party.

This would pave the way for an election, with February 8 cited as the most likely date by various media outlets.

This election, if called, will be Takaichi's first time facing Japan's voters in an election.

The Japanese index gained over 3% to hit a record high on Tuesday on expectations that Prime Minister Takaichi could call for a snap election likely in February.

Reference Sources

1. nationthailand - Takaichi to Announce Lower House Dissolution Mon.
2. thesunmy - Japan’s PM Takaichi set to call snap election in February
3. malaymail - Japan PM Takaichi eyes February snap election as approval ratings soar
4. cnbc - Japan's Nikkei 225 set to hit another high as Asia markets look past geopolitical worries
5. ft - Japan’s Sanae Takaichi to call snap election

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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