Lagarde warns of the European Central Bank to enter Trump in the Federal Reserve serious economic risks

The main leader in the global economy warns that the unjustified intervention in the Federal Reserves by the President Donald Trump It can pose serious economic risks to the United States and the rest of the world.

Christine Lagarde, President of the European Central Bank, said in an interview with Radio Classic on Monday that the efforts made to remove the Federal Reserve Chair. Jerome Powell Or Federal Reserve Governor Lisa Cook “is a very serious danger to the American economy and the global economy.”

“If monetary policy in the United States is no longer independent and instead it depends on the dictates of this or that person, then I believe that the influence on the balance of the American economy can be, as a result of the effects that will have this all over the world, very worrying, because it is the largest economy in the world,” I explained to Garde.

Trump has repeatedly threatened to shoot Powell, who was appointed as president in 2017, not to reduce the federal money rate to measure the Federal Reserve – although he retracted these threats this summer as the duration of Powell is scheduled to end in May 2026.

Trump requests the courts to allow Lisa Cook removal immediately at the Federal Reserve; The judge sets a rapid schedule

The president is also trying to shoot cooking after Bill Bouti, director of the Federal Housing Agency, Bill Polly, the criminal referrals of Cook claimed the mortgage summary before joining the Federal Reserve. Cook was not charged with a crime, while Cook’s suit to prevent her from shooting by Trump is currently playing in court.

It is not clear whether federal courts will agree that the criminal referral, in the absence of the actual criminal charges that are ultimately submitted or condemned, meets the criterion necessary to remove the Federal Reserve Governor “for the cause.” In other federal agencies, “for the cause” is generally interpreted as applying to misconduct or misconduct.

Trump’s shooting efforts is the first time in the history of the United States that the President tried to remove a ruler who nourishes him, and the modernity of the situation may lead to the case. supreme court. If the president is able to successfully remove cooking, he will allow him to appoint an alternative who can prefer his position on lowering interest rates.

The federal reserve independence was credited with political influence in monetary policy decisions as a pivotal protection of the American economy and its role in the global economy. Economic research has found that political intervention in central banks around the world contributed to High inflationWeaker currencies and reduce stock prices.

Goldman Sachs says that under the independence of the central bank has economic repercussions

The Federal Reserve stopped lowering interest rates in all its five meetings this year amid uncertainty about the extent Trump’s tariff It will be either one -time prices or to create more continuous inflationary pressures.

The most popular inflation measuring devices – Consumer price index (CPI) and the Personal Consumption Expenditure Index (PCE) preferred by the Federal Reserve – have been 2 % higher than this year and showed signs of rise as customs tariffs operate through the economy.

The PCE PCE print that was released last week showed that the PCE main address increased by 2.6 % from last year, while Core PCE, which excludes the prices of food and volatile energy, rose to 2.9 %. In the consumer price index data in July, the main inflation increased by 2.7 % on an annual basis, while basic consumer prices increased by 3.1 % from last year.

The Federal Reserve Chairman refers to the labor market in the Federal Reserve in the labor market

However, a July Jobs report weak Fears raised concerns about a deterioration in the labor market and Powell indicated in his speech at the annual conference of the Central Bank in Jackson Hall that the variable risk balance on the double federal reserve can open the door to lower prices.

Policymakers in the Open Market Committee of the Central Bank (FOC), the Federal Reserve Bank, responsible for monetary policy decisions, will receive a new look at inflation data when the CPI print in August next week.

The inflation data, along with the Jobs August report for this week, will help the FBI policy makers before their next meeting and the interest rate decision on September 17.

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The market is pricing to reduce 25-Basis to the Federal Federal Money rate at the Federal Reserve at the September meeting, where the CME Fedwatch tool showed 89.7 % of this size compared to a 10.3 % chance of the rates in the current target of 4.25 % to 4.5 %.

Reuters contributed to this report.