“Faced with the serious regressions of the Trump administration”, the governor of the Banking of France demands “to defend the independence of the central banks”

The governor of the bank of France, François Villeroy de Galhau, increases his tone. This Wednesday, September 3, he called to “defend the independence of the central banks”, believing that calling it is “dangerous for democracy”, while President Donald Trump lies in the pressure of the American Federal Reserve (Fed).

“Europeans must, faced with the serious regressions of the Trump administration, we defend the independence of central banks. No, it is not an anomaly in democracy: independence has been conferred by democracy, and is to attack it in contradiction with US law that is dangerous for democracy,” he told a speech in Austria, Vienna.

“No, Independence is not done for the American central bankers; it is at the service of all citizens,” he continued during this speech delivered in honor of Robert Holzmann, governor of the Central Bank of Austria and a member of the Council of Governors of the European Central Bank (ECB), whose mandate ended at the end of August.

“The victory against inflation is acquired”

Therefore, added François Villeroy de Galhau, thanks to the monetary policy of the ECB, “the victory against inflation is acquired.” The US president is trying to revoke the governor of the Fed Lisa Cook, accused of the presidential camp of having lied to obtain real estate loans at more favorable rates. The case is before the American justice.

Lisa Cook’s departure would offer President Trump the opportunity to name the Fed a new personality sharing her ideas. Donald Trump has also been addressing the president of the Fed several times in recent months, Jerome Powell, whom he will delay to reduce US interest rates.

For his part, the governor of the Bank of England (BOE), Andrew Bailey, said he was “very worried” on Wednesday for the independence threats of the Fed, believing that it was a “very serious situation.”

These comments join the concerns expressed on Monday by the president of the ECB Christine Lagarde. She had tried that taking control of Donald Trump’s US monetary policy would be “a very serious danger” for the US and global economy.

If the Fed left its rates without changes in July, between 4.25% and 4.50%, the market estimates that it should reduce them after its next meeting on September 16 and 17.