French ECB policymaker Francois Villeroy de Galhau says central bank independence does not prevent low interest rates, supporting the Federal Reserve against White House pressure. President Donald Trump has openly criticized Fed Chair Jerome Powell, calling for rate cuts and attempting to remove Fed Governor Lisa Cook. Villeroy emphasizes that independence is crucial for controlling inflation and maintaining stable expectations. ECB President Christine Lagarde and Bank of England Governor Andrew Bailey express concerns about threats to the Fed’s independence, warning of potential global economic repercussions. The debate highlights the importance of central bank autonomy in monetary policy decisions.

Read more at Yahoo Finance: Central bank independence is no obstacle to low rates, says ECB’s Villeroy