In an unprecedented show of financial diplomacy, eleven of the world’s most powerful central bankers have issued a joint declaration of "full solidarity" with US Federal Reserve Chair Jerome Powell. The move is a direct rebuke to President Donald Trump, whose administration has launched a criminal investigation into the Fed chief.

The independence of the US Federal Reserve is the bedrock of the global financial system. By threatening Powell with DOJ probes, Trump is shaking the pillars of the global economy. Recognizing the danger, governors from the Bank of England, ECB, and others have stepped in, declaring that central bank independence is "critical to preserve."

Oil Markets Spooked

While the bankers fight in the boardroom, the markets are bleeding on the floor. Oil prices have surged to a two-month high, with Brent Crude hitting $64.46 a barrel. The spike follows Trump’s threat to slap a 25% tariff on any country trading with Iran, a move that could ignite a trade war with China and India.

• The Conflict: Trump views the Fed as a political tool; global bankers see it as a neutral arbiter of stability.
• The Risk: If the Fed’s independence falls, the US dollar—and by extension, the Kenya Shilling—could face extreme volatility.
• The Market Reaction: Uncertainty is driving up oil prices, which spells bad news for Kenyan motorists at the pump next month.

Why It Matters to Nairobi

When the US Fed sneezes, the Nairobi Securities Exchange catches a cold. A destabilized Federal Reserve means erratic interest rates and a fluctuating dollar, making imports more expensive for Kenya. This boardroom brawl in Washington is not just political theater; it’s a direct threat to the cost of living in East Africa.

"This is about the rule of law," the bankers wrote. But for the markets, it’s about survival.