Bank of England (BoE) Governor Andrew Bailey has bemoaned how United States President Donald Trump has been going after Federal Reserve Chairman Jerome Powell.

Speaking at a press briefing in London, the BoE governor said, “Jay Powell is a dear friend of mine – obviously, we are very close, we work very closely together. He is a man of utmost integrity.” This latest comment is coming after Bailey promised not to interfere or comment on US politics. The BoE governor’s comments came after Trump turned up his attacks a notch, pressuring the Fed to slash rates again despite signs that inflation could still rise.

BoE governor comments on Trump’s issue with Fed Chair

Powell also received support from European Central Bank President Christine Lagarde last month, calling him “the standard of a courageous central banker.” However, in America, Trump is far from convinced. He wants someone new to take charge of the Fed and is preparing to appoint a replacement. While weighing in on the US situation, Bailey was also dealing with pressure at home.

On the same day he made those comments, the Bank of England cut interest rates by 25 basis points, but the vote was anything but smooth. The Monetary Policy Committee refused to agree on a motion. Four members voted to hold rates. Four voted to cut. One went even further and called for a 50-basis-point cut. That deadlock forced a second round of voting just to get a majority for the 25-point move.

The development was a sharp change from the committee’s tone in June, where the decision was less fractured. A 6-3 vote in favor of keeping rates steady. But by August, the growing uncertainty around inflation and economic growth had cracked consensus wide open. That move sent the British pound up by 0.5%, in line with traders’ expectations. But it hit the UK stock market hard. The FTSE 100 dropped 0.7% as the stronger pound hurt big exporters.

Trump intensifies the search for Powell’s replacement

Inside the White House, there has been an intensified search for Powell’s replacement. According to Trump, the list of candidates to replace the Fed Chair has been narrowed down to three names, noting that Treasury Secretary Scott Bessent, Vice President JD Vance, and Commerce Secretary Howard Lutnick are heading the search committee.

Among the candidates being looked into, one of the most obvious choices is Federal Reserve Governor Christopher Waller. According to Bloomberg, Waller, a Trump appointee, has impressed advisers with his ability to base policy on forecasts instead of only current economic data. They also like that he understands how the Federal Reserve system works as a whole. He’s already spoken with Trump’s advisers but hasn’t yet met with the president himself.

Waller has a Ph.D. in economics, and recently drew even more attention by breaking from Powell and the rest of the Fed board when he voted for a 0.25-point cut, saying there were rising signs of weakness in the job market. A few days after the meeting, a new jobs report showed that employment growth had declined in the last three months, backing Waller’s concerns. Still, Powell and others on the board have called for a patient approach, waiting to see how Trump’s tariffs affect the economy before making a move.

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