ECB President Christine Lagarde has issued a warning that President Trump’s potential interference with the Federal Reserve could pose significant risks to global financial stability. Her remarks follow Trump’s threats to remove Fed officials Jerome Powell and Lisa Cook. Lagarde expressed concern over the implications of such actions, highlighting the importance of central bank independence in maintaining economic stability.
The comments were made as the French government faces a no-confidence vote, adding to the concerns about political pressures on financial institutions. Lagarde emphasized that the independence of central banks is crucial for effective monetary policy and economic growth. She called for a united front among global leaders to protect the integrity of financial systems.
Trump’s threats have sparked debates among economists and policymakers about the potential impact on U.S. economic policies. Concerns are growing over how such political interference could affect interest rates, inflation control, and overall market confidence. The ECB chief’s warning underscores the growing tensions between political leadership and central bank autonomy in shaping economic policy.