BoE’s Bailey Backs Powell Amid Political Pressure, as ECB’s Lagarde Also Voices Support

Bank of England Governor Andrew Bailey publicly endorsed Federal Reserve Chair Jerome Powell during a London press briefing, calling him a "man of utmost integrity" despite initially claiming he wouldn’t comment on U.S. politics. The remarks come as former President Donald TRUMP escalates attacks on Powell, pushing for rate cuts despite inflationary risks. European Central Bank President Christine Lagarde previously praised Powell as "the standard of a courageous central banker," but Trump remains unconvinced, reportedly preparing to replace him.

Meanwhile, the BoE’s own Monetary Policy Committee faced internal divisions, narrowly approving a 25-basis-point rate cut after a deadlocked first vote. The 4-4 split, with one member advocating a deeper 50-point cut, marked a stark contrast to June’s more unified 6-3 hold decision—highlighting growing uncertainty over inflation trajectories.