Summary
The head of the European Central Bank, Christine Lagarde, warned that if the U.S. Federal Reserve's independence is compromised, it could harm the global economy. President Trump has criticized the Federal Reserve and its chair, Jerome Powell, pushing for lower interest rates to boost growth. Lagarde believes it would be hard for Trump to control the Fed due to existing legal protections.
Key Facts
- Christine Lagarde is the head of the European Central Bank.
- Lagarde warned that if the U.S. Federal Reserve loses its independence, it could hurt the global economy.
- President Trump has criticized the Federal Reserve, especially its chair, Jerome Powell.
- Trump wants to cut U.S. interest rates to below 1% to stimulate growth.
- The current Federal Reserve target interest rate is between 4.25% and 4.5%.
- The U.S. Federal Reserve is meant to be independent of the government.
- Trump tried to fire Fed governor Lisa Cook, which is being challenged in court.
- Lagarde noted it would be difficult for Trump to control the Fed due to legal protections, such as requiring a Fed governor to be guilty of misconduct in order to be dismissed.
