PARIS (Reuters) -If U.S. President Donald Trump removed Federal Reserve Chairman Jerome Powell or Fed governor Lisa Cook, then this would represent a "very serious danger for the U.S. economy and the
Lagarde Warns of Economic Risks from Trump's Potential Fed Interference
Impact of Political Influence on Monetary Policy
PARIS (Reuters) -If U.S. President Donald Trump removed Federal Reserve Chairman Jerome Powell or Fed governor Lisa Cook, then this would represent a "very serious danger for the U.S. economy and the world economy", the European Central Bank President Christine Lagarde said on Monday.
Potential Consequences of Fed Leadership Changes
Speaking to French broadcaster Radio Classique in an interview, Lagarde said: "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's Perspective on Independence
Trump has repeatedly attacked the Fed’s chair, Jerome Powell, for not cutting the short-term interest rate and threatened to fire him. Trump is also attempting to fire Federal Reserve Governor Lisa Cook.
(Reporting by Dominique Vidalon;Editing by Sudip Kar-Gupta)
