Summary
The Bank of England governor, Andrew Bailey, is worried about threats to the independence of the US Federal Reserve. This concern comes as President Donald Trump continues to pressure the Fed to cut interest rates. European Central Bank president Christine Lagarde shares these concerns, suggesting that losing independence could harm global economic stability.
Key Facts
- Andrew Bailey is the governor of the Bank of England.
- Bailey expressed concerns over threats to the US Federal Reserve's independence.
- President Donald Trump has criticized Fed chair Jerome Powell for not lowering interest rates.
- Trump reportedly tried to fire Fed governor Lisa Cook, who is now suing him.
- Christine Lagarde, president of the European Central Bank, also warned against loss of Fed independence.
- Lagarde believes that following presidential orders could hurt global economic stability.
- Trump has aimed for large interest rate cuts since returning to the White House.
- The Bank of England recently cut UK interest rates but faced difficulty in reaching this decision.
