Central banks, which are responsible for managing a country's money supply and interest rates, are facing a growing challenge from populist political movements, according to Andrew Bailey, the Governor of the Bank of England. In a speech at the London School of Economics Trium Anniversary Conference, Bailey warned that public trust in institutions like central banks is declining in many countries. He noted that some people believe central banks are too closely tied to financial interests and not aligned with the will of the general public. Bailey highlighted that populist political movements often view central banks as unrepresentative elites that stand in the way of popular sovereignty. These movements can challenge the independence of central banks, which are meant to operate free from short-term political pressures. However, Bailey emphasized that this independence must be balanced with accountability to Parliament and the public. He did not name any specific political leaders, parties, or countries, but his comments come amid recent tensions in the United States, where President Donald Trump has criticized the Federal Reserve for its handling of interest rates. In the U.S., former Federal Reserve Chairman Jerome Powell has spoken about the threat to the central bank's independence, citing concerns over potential criminal charges against Fed officials by Trump. The president also attempted to remove Fed Governor Lisa Cook, further highlighting the tension between political leadership and central bank autonomy. In the UK, the Reform UK party, led by Nigel Farage, has criticized the Bank of England's bond-selling program, known as quantitative tightening, for causing financial losses to taxpayers. While Reform UK has proposed changes to how the central bank operates, it has pledged to maintain its independence. Bailey stressed that central banks must not assume their legitimacy is guaranteed. He urged them to communicate clearly with the public and remain accountable to elected officials. He clarified that central bank independence does not mean they are detached from democracy but rather that they are protected from short-term political pressures within a democratic system. This independence, he said, must be accompanied by accountability and legitimacy derived from parliamentary oversight.