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Lagarde sounds alarm over Trump controlling U.S. monetary policy
Christine Lagarde, President of the European Central Bank (ECB), warned on Monday that if former U.S. President Donald Trump were to gain control over American monetary policy, it would pose “a very serious danger” to both the U.S. and global economies.
Speaking on Radio Classique, Lagarde emphasized that the Federal Reserve’s policies “obviously affect the United States in maintaining price stability and ensuring optimal employment.” She added, “If it were subject to the dictates of one person or another, the balance of the U.S. economy, and consequently the effects on the world, would be highly concerning.”
Lagarde noted, however, that such a scenario would be “very difficult” to achieve due to the U.S. Supreme Court, which she described as widely respected and having ruled that a Fed governor can only be removed for serious misconduct. “One would have to go to great lengths to be removed for serious fault,” she added.
She also highlighted the challenge Trump would face in attempting to control the Federal Reserve Board, which consists of seven governors in Washington plus regional bank governors. Despite his repeated criticisms of Fed Chair Jerome Powell—whom he appointed during his first term—Trump has also sought to remove Governor Lisa Cook, alleging she misrepresented information to obtain favorable mortgage loans.