Overview

• Andrew Bailey told Parliament's Treasury Committee he is very concerned about efforts that could erode the U.S. Federal Reserve's autonomy and called such moves a dangerous path.
• He said monetary and financial stability provide the foundations for policy, which require central banks to take decisions free from political pressure.
• Bailey cited the Fed's strong reputation for independence and decision-making, stressing its global importance as the central bank for the world’s largest economy.
• His remarks followed President Donald Trump's public discussion of firing Chair Jerome Powell and last month's attempt to dismiss Governor Lisa Cook, which accelerated legal scrutiny of presidential removal powers.
• Bailey agreed that losing central bank independence could translate into higher prices, higher mortgage costs, and more expensive borrowing for social housing and businesses.