Bailey Warns Against Threats to Federal Reserve's Independence

Bank of England Governor Andrew Bailey conveyed grave concerns over threats to the U.S. Federal Reserve's independence on Wednesday. This issue was described as 'very serious' during his appearance before parliament's Treasury Committee.

Bailey's remarks came after President Donald Trump applied pressure on the Fed to reduce interest rates. Trump's public discussions on firing Fed Chair Jerome Powell, along with attempts to dismiss Fed Governor Lisa Cook, have raised significant legal questions about the Fed's independence.

Bailey emphasized the importance of maintaining the central bank's autonomy, stating that trading off this independence for political reasons would be 'a very dangerous road to go down.' He stressed monetary and financial stability as crucial for making informed governmental decisions.

(With inputs from agencies.)