Overview
- In a speech published Friday to the Bellagio Group, Bank of England governor Andrew Bailey said international institutions should “challenge back” against populism with deeds, not just words.
- Bailey warned that erosion of trust in institutions would harm prosperity and highlighted four structural headwinds: ageing populations, climate shocks, defence spending’s fiscal burden, and growing barriers to trade.
- Earlier this week he joined central bank chiefs from Europe, Sweden, Canada and Australia in a joint statement expressing “full solidarity” with Federal Reserve chair Jerome Powell and calling central bank independence critical.
- The statement followed Powell’s claim that he faced an unprecedented threat of criminal indictment tied to testimony on Fed building renovations, which he linked to broader pressure from the Trump administration.
- Former Fed chairs, joined by former Treasury secretaries from both parties, publicly criticized the Justice Department probe and compared the administration’s posture to “emerging markets with weak institutions.”