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Andrew Bailey told the Treasury Select Committee: "This is a very serious situation, I am very concerned."

Trump has repeatedly attacked Fed chair Jerome Powell for not cutting interest rates and attempted to fire one of its governors, Lisa Cook who is now suing the US president.

Mr Bailey is latest central banker to raise the alarm after European Central Bank (ECB) president Christine Lagarde said a loss of independence was a "very serious danger" to the global economy.

Ms Lagarde warned that if the Fed was forced to respond to presidential orders it would have a "very worrying" effect on economic stability around the world.

Mr Bailey echoed her concerns, telling MPs: "The Federal Reserve ... has built up a very strong reputation for independence and for its decision making."

Trump has made it clear that since returning to the White House in January that he would like to see large cuts in official interest rates which have remained at between 4.25% to 4.5% since last December.

In contrast, the ECB and the Bank of England have cut borrowing costs a number of times since last year.

Trump has repeatedly attacked Mr Powell for not doing the same - calling him "too late" and claiming he is "lousy" at his job.