The president of the European Central Bank defended her American counterpart in an interview broadcast on Fox News.
Jerome Powell seems to have found an ally across the Atlantic in his resistance to Donald Trump. “It is dangerous to undermine the independence of central banks”said the president of the ECB in an interview broadcast on Sunday in the United States, where President Donald Trump has been putting the Fed under pressure for long months to shape monetary policy.
“When a central bank ceases to be independent, or when its independence is threatened, it becomes dysfunctional. She starts to do things that she shouldn’t ”warned Christine Lagarde in an interview with Fox News, the preservative’s favorite channel in the United States. “The next step is confusion, instability, if not worse”added the president of the European Central Bank, after having participated in the annual meetings of Jackson Hole (Wyoming, West) alongside her counterpart from the Central Bank of the United States (Federal Reserve, Fed), Jerome Powell.
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Pressure of Donald Trump on the Fed
Since his return to power in January, US President Donald Trump has been calling for a decrease in interest rates from the Fed, which influence borrowing costs and the march of the economy. The Republican embarked on a SAPE company by Jerome Powell, in the hope of accelerating his departure from the institution.
The mandate of the boss of the Fed, in almost irremovable theory, runs until the spring of 2026. Jerome Powell is not alone in fixing the American guiding rates. So Donald Trump also seeks to reshape the rest of the federal reserve committee, in order to place people more in line with his vision of the economy. He recently widened his targets by demanding the departure of Governor Lisa Cook, accused by his camp of having falsified documents to obtain a mortgage.