In a striking intervention that aligns her with populist economic thinking, former Prime Minister Liz Truss has thrown her weight behind Donald Trump's attacks on the US Federal Reserve and issued a stark warning to central banks worldwide.
Speaking at a gathering in Dallas, Texas, Truss declared that institutions like the Fed and the Bank of England are facing an inevitable 'reckoning' for what she characterised as years of poor decision-making and political mission creep.
The Populist Alliance on Monetary Policy
Truss's comments place her firmly in the camp of those arguing that independent central banks have overstepped their mandates. She accused them of being responsible for lacklustre economic growth and criticised their focus on issues like climate change, which she believes distracts from their core mission of controlling inflation.
'We are now in a position where central banks have become part of the political establishment,' Truss stated, echoing sentiments frequently expressed by Trump, who has vowed to assert greater presidential control over the Fed if re-elected.
A Warning Shot to Threadneedle Street
The former PM's critique extends directly to the UK's own financial institutions. She took aim at the Bank of England's recent performance, suggesting its policies have hindered rather than helped economic prosperity.
Her speech signals a continuing commitment to the low-tax, deregulatory agenda that defined her brief premiership, positioning herself as a standard-bearer for a movement sceptical of traditional economic orthodoxy.
The Coming 'Reckoning'
Truss predicted a significant shift in how central banks are managed and held accountable. 'I think there is a reckoning on the way for central banks,' she proclaimed, suggesting that political leaders will seek to curtail their independence and refocus them on narrower objectives.
This alignment with Trump's economic nationalism underscores the evolving alliances within centre-right politics, where critiques of global financial institutions are becoming increasingly mainstream.
