BoE Governor Bailey Expresses Concern Over Trump Fed Independence Attacks

Bank of England Governor Andrew Bailey has expressed strong concern over U.S. President Donald Trump's repeated attacks on the Federal Reserve's independence, calling it a 'very serious situation' and a 'dangerous road to go down.' Trump has pressured the Fed to cut interest rates, publicly discussed firing Chair Jerome Powell, and recently attempted to fire Fed Governor Lisa Cook, escalating tensions and raising questions about political interference in monetary policy. Bailey emphasized that central bank independence is crucial for maintaining monetary and financial stability, which underpins sound government decision-making. He noted that the Fed's long-standing reputation for independence is vital not only for the U.S. but for the global economy, echoing similar concerns raised by European Central Bank Chair Christine Lagarde. Bailey assured that independent central banks are accountable to parliament and must make decisions within their remits to support long-term economic health rather than short-term political gains. These remarks underscore the growing international unease about political pressures on the Fed during a period of economic uncertainty and trade tensions.