BOE’s Bailey Warns of Spillovers From Trump Attack on Fed (2)

Bank of England Governor Andrew Bailey warned of the “substantial” threat of spillovers from US President Donald Trump attacking the independence of the Federal Reserve.

Bailey said on Tuesday that an intervention by other central banks in support of Fed Chair Jerome Powell was “pretty unprecedented” but was needed given the US’s global influence.

“There is very substantial scope for spillover,” he told lawmakers on Parliament’s Treasury Committee. “There are substantial externalities and potential spillovers from things that go on in the US, and particularly, I would say from a threat to the independence of the Federal Reserve.”

The Fed ...