Bank of Canada Warns Loss of U.S. Fed Independence Could Strongly Impact Canada
Latest news on WhatsApp أجدد الأخبار على واتسابBank of Canada Governor Tiff Macklem warned that any loss of independence at the U.S. Federal Reserve could have significant consequences for Canada, citing the deep integration of financial markets between the two countries.
Speaking at a press conference following the Bank of Canada’s latest interest rate decision, Macklem said threats to the autonomy of the U.S. central bank increase economic uncertainty and could spill over into Canada’s economy due to close cross-border financial and trade links.
“The Federal Reserve is the most important central bank in the world,” Macklem said, adding that its independence plays a critical role in maintaining global financial stability. Any erosion of that independence, he noted, would not only affect the United States but also countries closely connected to its markets, including Canada.
Macklem stressed that central bank independence allows policymakers to make difficult decisions based on economic data rather than political pressure, which helps anchor inflation expectations and reduce market volatility.
The comments came as the Bank of Canada held its benchmark interest rate steady, signaling a cautious approach amid persistent global uncertainty, trade risks, and shifting monetary policy expectations in the United States
