While Donald Trump does not have his blows against Jerome Powell, Christine Lagarde warned against an interrogation of the independence of the American Central Bank. “The independence of any Central Bank is of critical importance,” said the president of the European Central Bank (ECB) this Sunday in an interview with the American television channel Fox News, questioned in the swirls within the American Federal Reserve (FED) in recent months.
Referring to his years at the head of the International Monetary Fund (IMF), Christine Lagarde said that “he saw closely what is happening when a central bank ceases to be independent or when its independence is threatened.” “She becomes dysfunctional and begins to do things she should not do. The next step is the disturbance, instability or worse. Therefore, I think it should not be discussed,” he continued, speaking outside the annual meetings of Jackson Hole, in which his fed counterpart, Jerome Powell, also participated.
American guidelines
Since his return to power in January, Donald Trump has constantly claimed a reduction in Fed’s interest rates, which have repercussions on the costs of loans and the progress of the economy. The US President attacks Jerome Powell tirelessly, hoping to accelerate his institution’s departure and hopes to replace him with a person closer to his ideas. The mandate of the Fed Chief, in almost irremovable theory, runs until the spring of 2026.
Jerome Powell, however, is not just to fix the American guidance rates. As a result, Donald Trump also seeks to remodel the rest of the Fed Committee, to place the most in line with their vision of the economy. This Friday, he said he was ready to fire one of the governors of the Fed, Lisa Cook, if he did not give up herself, when the Republican field accused her of having falsified documents to obtain a mortgage.
Donald has already taken advantage of the resignation of another Fed official, Adriana Kugler, to appoint one of his nearby economic advisors, Stephen Look, before the planned renewal for this position next January. Stephen looked at the US president advised so far and defended his economic policy in the media.
Source: BFM TV
