European Central Bank President Christine Lagarde has warned that President Donald Trump's attempts to undermine Federal Reserve independence would pose a "very serious danger" to the global economy.
Speaking to France's Radio Classique on Monday, Lagarde said White House control over U.S. monetary policy would have "very worrying" consequences for economic stability worldwide.
"If U.S. monetary policy were no longer independent and instead dependent on the dictates of this or that person, then I believe that the effect on the balance of the American economy could, as a result of the effects this would have around the world, be very worrying, because it is the largest economy in the world," Lagarde said.
Last month, Trump attempted to fire Fed Governor Lisa Cook over mortgage fraud allegations.
Cook has since filed a federal lawsuit challenging the removal, arguing that Trump lacks legal authority and that the accusations are unsubstantiated.
The Fed maintains its current target range of 4.25% to 4.5% due to inflation concerns, particularly around tariff impacts, yet Trump has repeatedly insisted the interest rate cuts to below 1%.
Lagarde said it would be "difficult" for Trump to gain control of the Fed's majority decision-makers, but warned that success would destabilise the central bank.
Cuts are widely expected later this month - however, they are unlikely to be as substantial as Trump would like, and Cook's case is proceeding through the Federal Court in Washington, D.C.
