Former British Prime Minister who stepped down after only 49 days in office voices support for Trump, calling for the central bank to face a "reckoning moment."

Liz Truss, the former British Prime Minister who attributed her historically short term in office to the Bank of England, praised US President Donald Trump for bringing global central banks closer to what she called "necessary accountability." In her latest remarks, she strongly supported President Trump's strong intervention in the Federal Reserve, stating that the Bank of England and the Federal Reserve should not have too much independence, and suggesting that the "reckoning moment" for central banks like the Bank of England is approaching. Truss, speaking on the "Odd Lots" podcast, expressed approval of Trump's criticisms of the Federal Reserve. The former Conservative Prime Minister stated that monetary policy is too important to be decided by unelected bureaucrats. She was forced to leave 10 Downing Street after just 49 days as Prime Minister in 2022 mainly because the global financial markets had a disastrous reaction to her "mini-budget," which led to a collapse in the UK bond market due to the negative effects of her budget policy, forcing the Bank of England to intervene. "The Bank of England needs to be accountable to politicians - the current system just doesn't work," she said in the interview. "The reckoning moment for central banks around the world is coming, not only in the UK, but also in the US, and in the European Central Bank (ECB) as well." Her latest comments indicate that Trump is attempting to overturn decades-long consensus on the value of independent central bank monetary policy, with significant support in some of the world's largest economies. Trump has heavily criticized Federal Reserve Chair Jerome Powell, accusing him of being unwilling to push for significant interest rate cuts. This week, he announced the dismissal of Federal Reserve Board member Lisa Cook, even though she argued that he did not have the clear authority to do so. On Tuesday, Trump stated that he is prepared to engage in legal battles over his attempts to oust Federal Reserve Board member Lisa Cook, and he looks forward to having a "majority seat for rate cuts" on the Federal Reserve Board, emphasizing that potential appointees to the Federal Open Market Committee (FOMC) must support rate cuts. This may push Trump's series of movements to lower interest rates, which he claims will save the country "billions of dollars." If Cook resigns, Trump may control four seats on the Federal Reserve FOMC, bringing him a step closer to "total control over monetary policy at the Federal Reserve." Market expectations that Trump will appoint more dovish candidates to replace Cook have caused the dollar to weaken across the board, with short-term U.S. Treasury yields falling. The US two-year Treasury yield has dropped to a near four-month low amid the tug of war between Trump and the Federal Reserve, and while the dollar index has rebounded, the overall trend remains downward. Under threat to the independence of the Federal Reserve, safe-haven sentiment and concerns about overvalued tech giants have significantly spiked, driving safe-haven assets like gold and silver to be eagerly sought after by market participants. In the UK, some officials from the right-wing populist Reform UK party, which has long led in opinion polls, have indicated that they may be willing to reclaim and control some of the strong policy independence of the Bank of England. According to Bloomberg, Reform UK leader Nigel Farage - a long-time supporter of Trump - has privately discussed the possibility of reclaiming the independence of the central bank. In the latest interview, Truss once again criticized the Bank of England, the Treasury, and the Office for Budget Responsibility (OBR) for her forced resignation from the position of British Prime Minister after recording the shortest term in office. She stated that the Bank of England had accumulated too much power and needed to take more responsibility for its actions that exacerbated inequality and made it more difficult for young people in the UK to buy homes. "As a democrat - someone who believes in democracy - I just think it's wrong to have these people making those decisions without being accountable to the voters," Truss said on the "Odd Lots" program. "Similarly, as I found when I was Prime Minister, if you don't have one of those levers, it's very difficult to marry fiscal policy with monetary policy. I think that needs to change." The role of the Bank of England in Truss's "mini-budget" disaster is quite complex. While Truss criticized the Bank of England for not properly regulating UK pension funds, contributing to the selling frenzy of UK Gilts that led to her dismissal, the Bank of England also extended a lifeline of up to 100 billion (about $130 billion) in support programs to the government she led. Truss has always been a staunch supporter of Trump's populist policies and low tax policies - and has consistently believed that she was overthrown by a stubborn and conspiratorial establishment. In the latest interview, she listed the International Monetary Fund, the World Bank, and the major central banks of the world as part of a network of institutions that concern her. "You're sailing in a stormy sea, and of course there are people who want you to fail, not just your political opponents, but these institutional opponents," she said. " Whether it's the Bank of England, the people sitting in the Federal Reserve, or the civil servants in the Treasury, these people are creating their own waves." Truss harshly criticized the Labour Party led by current UK Prime Minister Keir Starmer and expressed doubts about Farage. She emphasized that Chancellor of the Exchequer Rishi Sunak "essentially acts under the dictation of the Bank of England and the Treasury," but she did not provide evidence. "We are in an economic doom loop: higher taxes, lower growth, higher debt, and now it's hard to see a political way out," she said. "Even if Farage is elected in 2029 - and right now he's a popular bet in the betting companies - if the bureaucratic system doesnt change, if the governance of the UK doesn't fundamentally change, nothing will change." When asked if she would join the Reform UK party, she said she "hasn't really considered party politics at the moment, as my whole experience in government was that the power did not lie with politicians."