BOE's Bailey Defends Speaking Out Against Trump's Attacks on Powell, Would Do So Again

Bank of England Governor Andrew Bailey said he was right to defend then-Federal Reserve Chair Jerome Powell from Donald Trump's attacks and would repeat the stance, speaking Wednesday at an online event on central bank independence organized by the Official Monetary and Financial Institutions Forum. Bailey said he and other central bank chiefs spoke out because Trump had targeted Powell "as a person" rather than the institution's policy. "I count Jay as a friend. He's a man of the utmost integrity," Bailey said. "It was the right reaction at that time to say, 'I'm sorry, we are going to stand by our friend,' and you know I would do the same again." Earlier this year, Bailey and counterparts at the European Central Bank and Bank of Canada signed a coordinated letter declaring "full solidarity" with Powell after Trump served the Fed with subpoenas threatening a criminal indictment over headquarters renovations. Bailey has warned that erosion of central bank independence could spill over globally. Bailey declined to comment on current monetary policy ahead of the BOE's early November rate decision, with economists widely expecting a quarter-point hike to counter inflation triggered by the Middle East conflict.