European Central Bank chief Christine Lagarde warned Monday that it could be extremely dangerous for the global economy if US President Donald Trump gained control over US monetary policy.
Trump has sought to remove Federal Reserve governor Lisa Cook, a move critics say is aimed at filling the central bank with officials likely to back his calls for lower interest rates.
Speaking to France’s Radio Classique, Lagarde said it would be “very difficult” for Trump to fully sway the Fed’s policymaking body in his favour.
However, she added, “If he were to succeed, it would pose a very serious danger to both the US and global economies.”
Lagarde emphasised the Fed’s role in maintaining price stability and promoting “optimal” employment. “If monetary policy were dictated by one individual, the balance of the US economy – and the ripple effects worldwide – would be deeply concerning,” she said.
