Washington D.C., USA: ECB Chief Lagarde Warns of Serious Risks if Trump Gains Control Over U.S. Monetary Policy

European Central Bank (ECB) President Christine Lagarde has cautioned that there is a grave danger if U.S. monetary policy comes under the direct influence of President Donald Trump. Her remarks followed reports suggesting Trump may attempt to replace the current Federal Reserve leadership.

Lagarde stressed that the global economy could face severe consequences if the Federal Reserve, America’s central bank, operates according to Trump’s preferences. The warning comes amid speculation that Trump has been pressuring the Fed to slash interest rates, aligning with his own economic agenda. International media have also reported that Fed Governor Lisa Cook might be targeted for removal and replaced with Trump loyalists.

Addressing questions from journalists, Lagarde noted that while it would be difficult for Trump to fill the Fed with allies, any such attempt could destabilize both the U.S. and global financial systems. She emphasized that central bank independence is crucial to maintaining economic stability.

Decisions taken by central banks directly influence inflation, prices, and employment levels, Lagarde said. If the Federal Reserve begins making choices based on the will of a single individual rather than sound policy, it could have alarming repercussions for the American economy and beyond.