The Governor of the Bank of Canada, Tiff Macklem, expressed his support for the Federal Reserve Chairman, Jerome Powell, in the face of attacks from U.S. President Donald Trump. Macklem emphasized the importance of central bank independence, calling it 'sacrosanct,' and highlighted the benefits of clear mandates for these institutions in the current economic context.
In response to Trump's pressure on Powell, Macklem pointed out that independent central banks have been beneficial for Canada and other countries. He stated that this is 'a broader issue than monetary policy' and stressed the importance of protecting central bankers from political interference.
On the other hand, Republican lawmakers have generally supported Powell, although some have expressed criticism of his track record. In this regard, they highlighted his performance and the need to protect central bankers from political interference, viewing them as a stabilizing force in the economy.
Macklem also addressed the issue of tariffs and their impact on Canada's financial stability. He noted that tariffs can have lasting consequences, even if they are removed, and emphasized the need to expand markets beyond the United States to boost internal connectivity, trade, and transportation.
Regarding U.S. trade policy, Macklem acknowledged the radical changes driven by the Trump administration and the difficulty of predicting its evolution. He highlighted positive developments in U.S. trade policy, such as the framework agreed upon with the United Kingdom, but stressed that there is still work to be done in this area.
Finally, Macklem underscored the importance of smooth communication between countries and mutual understanding of each other's positions in the current economic context. In this regard, he emphasized the need to strengthen internal connectivity and trade to address global economic challenges.
