Trump’s potential Fed changes would pose serious risk, says ECB’s Lagarde

Published 01/09/2025, 10:06
Trump’s potential Fed changes would pose serious risk, says ECB’s Lagarde

Investing.com -- European Central Bank President Christine Lagarde warned Monday that the removal of Federal Reserve Chairman Jerome Powell or Fed governor Lisa Cook by U.S. President Donald Trump would represent a "very serious danger for the U.S. economy and the world economy."

In an interview with French broadcaster Radio Classique, Lagarde expressed concerns about the potential loss of independence in U.S. monetary policy.

"If U.S. monetary policy were no longer independent and instead dependent on the dictates of this or that person, then I believe that the effect on the balance of the American economy could, as a result of the effects this would have around the world, be very worrying, because it is the largest economy in the world," Lagarde said.

The ECB president’s comments come amid speculation about potential changes to Fed leadership under a second Trump administration.

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