PARIS: European Central Bank President Christine Lagarde has warned of serious danger to the global economy if US President Donald Trump gains control over American monetary policy.
Lagarde expressed concern about Trump’s attempt to remove Federal Reserve governor Lisa Cook to install officials supporting his calls for lower interest rates.
She told France’s Radio Classique that Trump would find it very difficult to completely swing the majority of the Fed’s policymaking body in his favour.
“If he were to succeed, it would be a very serious danger for the US economy and for the world economy,“ Lagarde stated.
She emphasised that central bank policies affect price stability and aim to ensure optimal employment levels.
“If it depended on the diktats of one person or another, the balance of the US economy and consequently the effects it would have on the entire world would be very worrying,“ Lagarde added. – AFP
