The governor of the Bank of England, Andrew Bailey, has called on global institutions to resist the rise of populism, which he warned could threaten progress in living standards worldwide. His comments came as a response to US President Donald Trump’s attempts to influence the independence of the Federal Reserve. Bailey said central banks and other international agencies have a duty to “challenge back” populist narratives and provide honest assessments, even when unpopular. He emphasized that defending institutional integrity is essential for economic stability. Bailey, alongside leaders from the European Central Bank, the Bank of Japan, and other major institutions, expressed “full solidarity” with Federal Reserve Chair Jerome Powell after he revealed he had faced legal threats from Trump. The BoE governor highlighted that inward-looking policies and populist rhetoric undermine progress. He noted three key features of populism: prioritizing domestic production over global cooperation, blaming outside forces for domestic problems, and eroding trust in national and international institutions. “These trends make the task of improving living standards harder,” Bailey said, adding that institutions must act decisively, not just issue statements. He stressed that central banks and policymakers need to maintain credibility and accountability while defending global economic cooperation. Bailey also addressed criticism from UK political figures, including Nigel Farage and former Prime Minister Liz Truss, who have sought to increase political influence over independent institutions. He defended the benefits of trade, openness, and coordination, arguing they support growth, specialization, and protection of legitimate national interests. He acknowledged that years of slow growth and rising social pressures have made promoting global openness more difficult. Bailey cited four major challenges facing developed countries: a slowdown in productivity-boosting technologies, aging populations, rising defense spending, and climate change. Despite these headwinds, Bailey argued that robust economic openness, trade, and international cooperation are essential to maintain stability. “We must be clear and agreed that a world without effective institutions is unlikely to be stable,” he said, urging countries to resist populist pressures and uphold the independence of key economic institutions.