The President of the European Central Bank, Christine Lagarde, stated today that Donald Trump’s influence on the monetary policy of the United States poses “a very serious danger” to both the U.S. and global economies.
Lagarde emphasized that the policy of the U.S. central bank (Federal Reserve) has a direct impact on maintaining price stability and employment in the United States, and any potential changes could provoke severe effects.
“If it depended on the whims of one individual or another (…) the balance of the U.S. economy, and consequently its global impact, would be deeply concerning,” Lagarde remarked.
In other comments to the French station Radio Classique, Christine Lagarde said it would be very difficult for Donald Trump to control the U.S. central bank, given that the U.S. Supreme Court is highly respected in the country.
“I hope that [Supreme Court] will also be respected by Donald Trump,” added Lagarde, noting that the Federal Reserve’s governor can only be removed for grave misconduct.
The President of the United States, Donald Trump, believes he has influence over monetary policy and aims for the Federal Reserve to lower interest rates.
Following persistent criticism of the institution’s president, Jerome Powell, appointed during his first term (2017-2020) as head of state, Donald Trump is now seeking the dismissal of one of the governors: Lisa Cook.
The governor is accused by Donald Trump of lying to obtain a more favorable mortgage rate.
Lisa Cook stated last week that she does not accept the removal and will take the matter to court.
