- Her comments come at a time of heightened uncertainty after a U.S. court recently struck down a number of Trump’s tariffs as illegal
- She emphasized that politicizing US monetary policy could have widespread consequences, given America's central role in the global economy.
- Recent U.S. court decisions invalidating many of Trump’s tariffs are compounding economic uncertainty, further unsettling markets.
European Central Bank (ECB) President Christine Lagarde has cautioned that any attempt by US President Donald Trump to undermine the independence of the Federal Reserve would have far-reaching consequences for both the American and global economy.
Speaking on Monday, Lagarde described the prospect of Trump dismissing Fed Chair Jerome Powell or Governor Lisa Cook as a “very serious danger.” She stressed that monetary policy must remain independent from political influence to ensure stability in the world’s largest economy.
Lagarde noted that the United States plays a pivotal role in global financial markets, and any disruption in the credibility of its central bank could trigger widespread economic repercussions. “If the Federal Reserve were to take orders from politicians, it would jeopardize trust and reliability in U.S. policy decisions,” she warned.
Her comments come at a time of heightened uncertainty after a U.S. court recently struck down a number of Trump’s tariffs as illegal. Analysts believe the combination of trade disputes and potential threats to the Fed’s independence could further unsettle global markets already grappling with slowing growth.