POLITICIZED US FED UNDER TRUMP A THREAT TO GLOBAL CENTRAL BANKS, SAYS BSP GOVERNOR

BSP Governor Eli Remolona Jr. warned that US President Donald Trump’s attacks on the Federal Reserve (Fed) pose a major threat to the independence of central banks worldwide. Trump’s recent firing of Fed Governor Lisa Cook escalates tensions as he pressures the Fed to cut interest rates, risking the Fed’s credibility. Experts say a politically compromised Fed could undermine global monetary policy, cause inflation, and destabilize financial markets. The US dollar has already weakened amid the turmoil, raising concerns about global financial stability. While the BSP is currently stable, political risks remain, especially with rising public debt and budget deficits.