{"id":375434,"date":"2025-08-26T17:01:11","date_gmt":"2025-08-26T17:01:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/375434\/"},"modified":"2025-08-26T17:01:11","modified_gmt":"2025-08-26T17:01:11","slug":"trumps-attack-on-fed-triggers-alarm-in-europe-over-economic-stability-politico","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/375434\/","title":{"rendered":"Trump\u2019s attack on Fed triggers alarm in Europe over economic stability \u2013 POLITICO"},"content":{"rendered":"<p>Chief among officials&#8217; worries is that, without independence, the faith on which central banks&#8217; stewardship of financial markets has been painstakingly built over decades will begin to crumble, not only in the U.S. but in Europe too. <\/p>\n<p>That would, in turn, erode central bankers&#8217; ability to steer the economy and manage inflation \u2014\u00a0<a href=\"https:\/\/www.politico.eu\/article\/political-attack-central-bank-latvia-under-fire-martins-kazaks\/\" target=\"_blank\" rel=\"noopener\">at a time when their credibility is already taking a beating amid deep dissatisfaction<\/a> over management of the economy after the pandemic.<\/p>\n<p>Independence is &#8220;paramount&#8221; for central banks&#8217; abilities to gently steer economies away from uncontrolled price growth, and &#8220;undermining it means risk of higher future inflation, higher interest rates, and more painful cost to the society from containing inflation,&#8221; Bank of Latvia Governor M\u0101rti\u0146\u0161 Kaz\u0101ks said in a <a href=\"https:\/\/x.com\/martinskazaks\/status\/1960281723490447612\" target=\"_blank\">series of posts<\/a> on X that he highlighted to POLITICO when asked about Cook.<\/p>\n<p>Others expressed a similar wariness, with one Governing Council member, granted anonymity to candidly discuss the sensitive subject, fretting that a breach of the Fed&#8217;s independence could have &#8220;enormous repercussions on the financial world,&#8221; while also stressing the basic principle of due legal process that&#8217;s not been afforded to Cook.<\/p>\n<p>&#8220;It&#8217;s terrible, nobody would believe us anymore if we go that route,&#8221; the official added. He compared the situation to Turkey, where President Recep Tayyip Erdo\u011fan&#8217;s years-long encroachment into the affairs of the Turkish central bank sparked hyperinflation that&#8217;s yet to subside.<\/p>\n<p>Others were more circumspect. Speaking in Berlin on Tuesday, Canadian Prime Minister Mark Carney \u2014\u00a0formerly governor of the Bank of England \u2014 shrugged off a question on Cook. &#8220;I&#8217;m confident that whatever the source of that volatility, U.S. financial stability will continue,&#8221; he told reporters. &#8220;Of course, prices will adjust to new news, so I don&#8217;t discount those changes.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Chief among officials&#8217; worries is that, without independence, the faith on which central banks&#8217; stewardship of financial markets&hellip;\n","protected":false},"author":2,"featured_media":364675,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[6725,472,32,2000,299,5187,478,17436,49],"class_list":{"0":"post-375434","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-central-banks","9":"tag-christine-lagarde","10":"tag-donald-trump","11":"tag-eu","12":"tag-europe","13":"tag-european","14":"tag-interest-rates","15":"tag-monetary-policy","16":"tag-united-states"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115096143997274146","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/375434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=375434"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/375434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/364675"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=375434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=375434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=375434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}