President of the European Central Bank Lagarde fires warning shot at Trump over Fed interference
Christine Lagarde has fired a warning shot at Donald Trump, cautioning that America’s economy risked instability if the president sought to interfere with the Federal Reserve.
Ms Lagarde, the president of the European Central Bank, insisted that central banks must remain independent if they were to focus on their jobs of controlling inflation and supporting the economy.
If monetary policy independence is undermined, “it becomes dysfunctional, it starts doing things that it shouldn’t do”, she said in an interview with Fox News, adding: “The next step is disruption. It is instability, if not worse. So I think that this should not be debated.”
Although she did not mention the US president by name, Ms Lagarde’s comments come against a backdrop of increased pressure from Mr Trump on the Fed and its chairman Jerome Powell.
https://www.msn.com/en-us/money/markets/lagarde-fires-warning-shot-at-trump-over-fed-interference/ar-AA1L7Acz