The shortest-serving prime minister in British history has gone nuclear in his support of Donald Trump in his attack on Federal Reserve independence, thereby warning that the world is about to find the reckoning of the most formidable central banks ever created. Liz Truss, who lost the job after only 49 days after her disastrous mini-budget delivered a death-stroke to UK markets, has intensified her drive against her perceived institutional enemies and endorses the controversial efforts of Trump to exercise control over monetary policy.
The way Truss declares war on unelected financial institutions
Liz Truss has given her backing to what President Trump has been trying to do with more command over the US Federal Reserve when she once more alleges that it was institutional opponents rubbing her out of Number 10 that have made her depart. The shortest-serving prime minister in Britain’s history told a podcast on the Odd Lots by Bloomberg: There is a reckoning to do with the central banks, not only of Britain, but also of the United States, also the European Central Bank.
Truss has shifted the blame to the Bank of England on at least three occasions, saying that they had plotted her downfall as her mini-budget debilitated the financial markets and forced the Bank to roll out a £100 billion emergency backup leader. This resulted in a breakdown in marshaling the pensions industry by the Bank of England, she argued, which was the primary source of disruption after she made a pronouncement pronouncing the detestation of 45 billion of unfunded tax cuts.
How democratic accountability has to crowd out technocratic control
The Bank of England should report to politicians, Truss argued; the vacuum in the existing system does not suffice; she presents herself as a populist since she left Downing Street. As a democrat, somebody who believes in democracy, I simply think it is wrong that people ought to be making such decisions, and no one ought to hold them accountable to the electorate.
Trump’s Federal Reserve assault gains powerful international ally
This is as Trump seeks to gain more political control of the Federal Reserve since his comeback into the white house, causing questions as to whether the central bank will be in control over decisions on interest rates and be sovereign over such decisions, according to The Guardian. Trump announced the dismissal of as an immediate effect Lisa Cook, a Fed board member, this week, although Cook has promised to appeal the ruling in court.
Trump has additionally, on numerous occasions, attacked Jerome Powell, chairman of the Fed, over the inability of this institution to reduce interest rates since December, referring to him as a stubborn mule and a numbskull. The announcement of the firing of Trump over Truth Social on US government bonds heavily increased the yield, and this evidence shows the influence of politics on the market.
The independence of central banks globally is at the level of existential risk
Liz Truss, who was relieved after her financial policy backfired in her short time in office, has supported Donald Trump in his attack on the autonomy of the US Federal Reserve. And the former Conservative leader, who both shouted about a deep state and the Bank of England, held that unelected central banks could demean elected politicians.
The way Liz Truss supported the Federal Reserve attacks by Trump is also a risk of further entry into the global attack on the independence of the central bank and credits decades of credibility of financial policy. Her imaginations of conspiracy within the institutions, together with Trump playing a direct role in their business, compel us to believe the parties involved are daging a systematic, populist counteroff against technocratic administration.