International Monetary Fund chief Kristalina Georgieva on Thursday underscored the importance of keeping central banks independent and threw her support behind beleaguered Federal Reserve Chair Jerome Powell, who is facing a Trump administration investigation for renovation cost overruns.

Georgieva told Reuters in an interview that there was ample evidence that central bank independence worked in the interest of businesses and households, and that evidence-based, data-based decision-making is good for the economy.

The IMF managing director said she had worked with Powell and respected his professionalism.

“I have worked with Jay Powell. He is a very good professional, very decent man, and I think that his standing among his colleagues tells the story,” she said, when asked about a letter of support signed by her predecessor, Christine Lagarde, now head of the European Central Bank, and other large central banks.

Powell on Sunday disclosed that the Trump administration had opened an investigation into him over cost overruns for a $2.5 billion project to renovate two historical buildings at the Fed’s Washington headquarters complex.

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Powell denies wrongdoing and has called the unprecedented actions a pretext to put pressure on him for not bowing to U.S. President Donald Trump’s long-running demands for sharply lower interest rates.

0:33
‘Too late’: Trump slams U.S. fed chair Powell as either ‘incompetent or crooked’

The probe has sparked widespread criticism from some key members of Trump’s Republican Party in the U.S. Senate, which must confirm his nominee to succeed Powell, along with foreign economic officials, investors and former U.S. government officials from both political parties.

Trump has repeatedly derided Powell’s leadership of the Fed and attacked him, often personally, over what he sees as the Fed chair’s slow moves to cut interest rates. On Wednesday, he dismissed concerns that eroding central bank independence would undermine the value of the U.S. dollar and spark inflation, telling Reuters, “I don’t care.”

Georgieva said the IMF looked carefully at issues such as monetary and financial stability, as well as the strength of a country’s institutions. It was specifically interested in the Fed, given the role of the U.S. dollar as a reserve currency.

“It would be very good to see that there is a recognition … that the Fed is precious for the Americans. It is very important for the rest of the world,” she said.

Trump has also attempted to fire another Fed official, Governor Lisa Cook, who has challenged her termination in a legal case that will be argued before the Supreme Court next week.

B.C. Premier David Eby spoke to reporters on Thursday morning from Mumbai, India, during his six-day trade mission.

He said that mining and energy companies in India are showing an interest in B.C.

“They are looking strongly to LNG as one of their ways of reducing carbon intensity, as well as reducing smog in the country,” Eby said.

“And so B.C. LNG has been an item of considerable interest, especially the projects that are reaching final investment decision over the next year — LNG Canada Phase 2, KSI Lisims LNG — as well as the projects that are under construction like Woodfibre LNG.”

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B.C. looks to deepen trade ties with India

Eby was also asked about the rise in extortion cases in B.C.

He said the province’s extortion task force will provide an update next week.

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“We have assembled a remarkable and historic task force, RCMP, CBSA,” Eby said.

“There are more police in Surrey right now than there have ever been. The RCMP has surged resources into the community.”

Eby said he has not been happy with the fact that there has been no update from the task force and he has asked them to provide one.

“There have been some important developments, people deported, an arrest here in India, cooperation between the Indian government and the Canadian government on this at the law enforcement level,” he added.

“That needs to continue, but, bluntly, we need better results, we need to see more arrests and whatever we can do to support the police to get the job done, we will do so.”

As of Jan. 12, Surrey police said there have been 16 reported extortion incidents in the city since the beginning of the year.

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Amid persistent doubts over the future of the Canada-United States-Mexico trade agreement (CUSMA), Mexico’s Economy Minister Marcelo Ebrard insisted on Thursday that the agreement remains firmly intact and that the three countries will close a deal to extend it.

“We’re already in the treaty review phase, and we have to finish by July 1; that’s our deadline,” Ebrard said during Mexican President Claudia Sheinbaum’s daily morning press conference.

“We have made good progress on all the points that concern each of the parties.”

Ebrard’s comments were his first on the topic since U.S. President Donald Trump again cast doubt on the treaty’s future earlier this week.

“There’s no real advantage to it, it’s irrelevant,” Trump said on Tuesday, as he toured a Ford factory in Dearborn, Michigan.

The trilateral trade agreement, known as USMCA, replaced the North American Free Trade Agreement in 2020 and is a backbone of Mexico’s economy.

The treaty, which was negotiated during Trump’s first term, requires the three countries to hold a joint review this year to extend the pact.

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If extended, the treaty will remain in place another 16 years. If not, it is subject to annual reviews.

2:03
Trump tariff threats back in spotlight as CUSMA trade talks to start in January

Technically, July 1 is a key date in the treaty’s review process, but many analysts expect negotiations to extend late into 2026 and said Trump will likely avoid extending the treaty before the U.S. midterm elections in November.

Trump’s recent threats to pursue military action against cartels have also added a new layer of uncertainty to U.S.-Mexico relations.

“I think Ebrard is betting on a best-case scenario, but the window for a July successful review is closing fast,” said Alexia Bautista, a former Mexican diplomat and lead Mexico analyst at the political risk consultancy firm Horizon Engage.

“Given recent events and statements, the risk is that Trump injects security into the process, turning the trade review into a far more political negotiation.”

Pedro Casas, chief executive of the American Chamber of Commerce of Mexico, said he expects the U.S. will continue imposing tariffs on a wide spectrum of Mexican exports, regardless of the treaty’s future.

The Trump administration has imposed sweeping 50 per cent duties on steel and aluminum exports to the U.S., along with a 25 per cent tariff on cars shipped from Mexico, even when those vehicles comply with the terms of the trade deal.

“I think the most likely scenario is a positive review process where we agree to extend the treaty for another 16 years, but steep tariffs still remain on Mexican exports that undermine the strength of the agreement,” Casas said.