BIS Chief Warns Political Threats Endanger Central-Bank Independence

Pablo Hernández de Cos, who took over as general manager of the Bank for International Settlements in July, used his first major public address on 26 August to underscore that central banks must retain operational independence to safeguard price stability. “A clear price-stability mandate, independence and accountability are the anchor, hull and mast of the monetary-policy vessel,” he said, arguing that monetary decisions should remain insulated from short-term political pressures. Although he did not mention the United States directly, the speech comes amid heightened scrutiny of Federal Reserve autonomy after President Donald Trump moved this week to dismiss Governor Lisa Cook, citing alleged past mortgage-document irregularities. Removing Cook would give the White House a four-member majority on the Fed’s seven-seat board, intensifying concerns that political interference could influence interest-rate decisions as inflation remains above target. Financial-market commentators and policy analysts have warned that perceived erosion of central-bank independence could complicate efforts to contain price pressures and unsettle global markets. De Cos said credible frameworks that combine clear mandates with accountability mechanisms were essential for both inflation control and public trust.