“A loss of independence of the Fed would affect us all. And for Canada, our financial markets are particularly integrated with the United States, so it would particularly affect us.”Macklem’s comments come as U.S. President Donald Trump has repeatedly criticized U.S. Fed chair Jerome Powell and the Fed for not moving faster to cut rates. Trump dramatically escalated his confrontation with the Fed earlier this month with the Justice Department investigating and threatening criminal charges. Fed interest rate changes can affect the dollar’s exchange rate against other currencies and the value of foreign investors′ U.S. assets. Tony Stillo, director of Canada economics at Oxford Economics, said if U.S. Fed policy rates become politically motivated, it could lead to knock-on effects in Canada.