The former British Prime Minister, who stepped down after just 49 days in office, strongly supports Trump and declares that the central bank is about to face a "reckoning moment."

According to the Zhitong Finance APP, Liz Truss, the former British Prime Minister who blamed her historically shortest term on the Bank of England, praised former U.S. President Donald Trump for bringing global central banks closer to what she called a "necessary reckoning." In her latest remarks, she strongly supported Trump's aggressive intervention in the Federal Reserve, stating that the Bank of England and the Federal Reserve should not possess excessive independence, and indicated that the "reckoning moment" for central banking systems like the Bank of England is approaching. Truss expressed her agreement with Trump's criticisms of the Federal Reserve during the "Odd Lots" podcast. The former Conservative Prime Minister stated that monetary policy is too important to be left to unelected bureaucrats. She was forced to leave Downing Street after just 49 days as Prime Minister in 2022, primarily due to the disastrous reaction of global financial markets to the "mini-budget" she led, which caused the UK bond market to collapse under the negative impacts of her budget policies, forcing the Bank of England to intervene. "The Bank of England needs to be accountable to politicians— the current system is indeed not working," she said in the interview. "The reckoning moment for central banks around the world is approaching, not only in the UK but also in the U.S. and at the European Central Bank (ECB)." Her recent comments indicate that Trump is attempting to overturn decades of consensus regarding the value of central bank independence in monetary policy, which has a large audience in some of the world's largest economies. Trump has heavily criticized Federal Reserve Chairman Jerome Powell for his reluctance to push for significant interest rate cuts, and this week he announced the firing of Federal Reserve Governor Lisa Cook, despite her arguing that he does not have the clear authority to do so. On Tuesday local time, Trump stated that he is prepared to engage in legal battles over his attempt to remove Federal Reserve Governor Lisa Cook and looks forward to having a "majority of rate-cutting seats" on the Federal Reserve Board. He emphasized that potential candidates for the Federal Open Market Committee (FOMC) must support a rate-cutting stance. This could drive a series of campaigns by Trump aimed at lowering interest rates, which he claims would save the nation "hundreds of billions of dollars." If Cook were to leave, Trump could control four seats on the Federal Reserve FOMC, bringing him closer to "completely controlling Federal Reserve monetary policy." As the market generally expects Trump to appoint more dovish candidates to replace Cook, the news caused the dollar to weaken across the board, and short-term U.S. Treasury yields fell. The yield on the two-year U.S. Treasury bond has dropped to a near four-month low amid the tug-of-war between Trump and the Federal Reserve, and although the dollar index rebounded, the overall momentum remains downward. Amid threats to the independence of the Federal Reserve, market risk aversion and panic over overvalued tech giants have surged, driving safe-haven assets like gold and silver to be eagerly sought after by market risk-averse funds. In the UK, some officials from the right-wing populist party Reform UK, which has long led in polls, indicated that they might be willing to reclaim and control some of the powerful policy independence of the Bank of England. According to Bloomberg in June, Reform UK leader Nigel Farage— a long-time supporter of Trump— has privately discussed the possibility of reclaiming central bank independence In a recent interview, Liz Truss once again blamed the Bank of England, the Treasury, and the Office for Budget Responsibility (OBR) for her forced resignation after setting the record for the shortest tenure as Prime Minister of the UK. She stated that the central bank has accumulated too much power and needs to take more responsibility for its actions that have exacerbated inequality and made it harder for young people in the UK to buy homes. "As a democrat—someone who believes in democracy—I just think it's wrong to let these people make those decisions without being accountable to the voters," Truss said on the "Odd Lots" program. "Similarly, as I found out when I was Prime Minister, if you can't get a handle on one of the levers, it's very difficult to combine fiscal policy and monetary policy. I think that has to change." The role of the Bank of England in Truss's "mini-budget" disaster is quite complex. Although Truss criticized it for failing to properly regulate UK pension funds, which contributed to the sell-off of UK gilts that led to her ousting, the Bank of England also extended a lifeline to her government through a bailout and support plan worth up to £100 billion (approximately $130 billion). Truss has always been a staunch supporter of Trump populism and a proponent of low-tax policies—and has consistently maintained that she was overthrown by a stubborn, conspiracy-laden establishment. In the latest interview, she listed the "International Monetary Fund, World Bank, and major central banks meeting regularly" as one of the networks of institutions that concern her. "You are sailing in a stormy sea, and of course there are people who want you to fail, not just your political opponents, but also these institutional adversaries," she said. "In the case of the Bank of England, those sitting in the Federal Reserve or the civil servants in the Treasury are creating their own waves." Truss expressed harsh criticism of the current Labour Party led by Keir Starmer and expressed skepticism towards Nigel Farage. She emphasized that Chancellor Rachel Reeves is "essentially acting under the dictation of the Bank of England and the Treasury," but did not provide evidence. "We are in an economic doom loop: higher taxes, lower growth, higher debt, and it's now hard to see a political way out," she said. "Even if Farage is elected in 2029—currently he is a popular bet with bookmakers—if the bureaucracy doesn't change, if the way the UK is governed doesn't fundamentally change, nothing will change." When asked if she would join the Reform Party, she stated that she is "not really considering party politics at this moment because my entire experience in government is that power is not in the hands of politicians."