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The Guardian - UK
The Guardian - UK
Business
Sushil Wadhwani

How can the UK avoid trouble in the gilts market?

Bank of England
The UK needs to emphasise to markets that the Bank of England is more independent than the Federal Reserve. Photograph: Maureen McLean/REX/Shutterstock

Assume that Rip Van Winkle had gone to sleep on the eve of the US election on 4 November 2024 and had woken up on 1 September 2025 and was told that, in the US, developments included:

a) Donald Trump had been talking of firing Jerome Powell, the chair of the Federal Reserve, and asserting that only those who believed that short-term interest rates needed to be a lot lower were qualified to be the next Fed chair. Moreover, he had attempted to take the unprecedented step of firing a board governor.

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