Finance Minister Jens Stoltenberg described President Trump as not his role model in monetary policy, highlighting the danger of political interference when setting interest rates. He stressed that independent central banks have served us well, and while debate on monetary policy is tolerable, it is Norges Bank that sets the interest rate, a principle fixed for over 25 years. Stoltenberg noted that politically controlled interest rates in the past led to higher inflation and unemployment, and he asserted that discussions can focus on policy design but not on whether central banks should be independent.
S. president threatening to fire central bank chief Jerome Powell, though it did not name specific countries. In Norway, a domestic debate has flared up after the LO leader asked Norges Bank to drop interest rate hikes to prevent wage settlements from being eroded by price increases.
The Red Party and Socialist Left Party have echoed this call, drawing criticism from NHO and right-wing parties who view it as undue interference. Stoltenberg has faced criticism for campaign promises on lower interest rates, which he and Prime Minister Jonas Gahr Støre have repeatedly denied. The government has invited a review of Norges Bank's mandate, but Stoltenberg believes this does not undermine its core goal of ensuring low price increases.
At spring meetings in Washington with the IMF and World Bank, the consequences of the war in Iran dominate discussions, with the IMF painting a picture of a world economy on thin ice. The conflict, with closed sea routes through the Strait of Hormuz, is expected to weaken global growth this year, and if prolonged, could increase inflation worldwide. Stoltenberg described the need to prepare for lower growth and higher price increases, noting this will affect Norway, and he has called for coordinated efforts among finance ministers to meet these challenges.
He emphasized the importance of a monetary policy that contributes to stability. On domestic issues, Stoltenberg repeated that the government is open to introducing measures against high fuel prices in the revised national budget, though he declined to comment directly on specific proposals to be considered tomorrow, stating it is up to the Labour Party's parliamentary group to take a position. He said that any measures should happen within responsible frameworks, noting it is tempting to spend money on measures but it is about how this is financed and what kind of whole it is in the budget.
He added that he should not go into details on how to handle the proposals, as they lie with the Storting and not with the government. He also expressed understanding of concerns about increased fuel prices and clarified that such measures belong in budget work.