President of the European Central Bank: Independence is a prerequisite for effective functioning of central banks

European Central Bank President Christine Lagarde told the US media that the independence of central banks is "crucial" and warned that any interference with their independence could have serious consequences. She made this statement against the backdrop of US President Trump's repeated pressure on the Federal Reserve in recent times.

Lagarde pointed out that "if a central bank loses its independence or if that independence is threatened, it will cease to function properly," which leads to "instability and even worse situations". It stressed that independence is a prerequisite for the effective performance of the central bank's tasks.

Recently, US President Trump has repeatedly called on the Federal Reserve to lower interest rates and publicly attacked Federal Reserve Chairman Jerome Powell personally, even threatening to remove him. However, the Federal Reserve left its benchmark interest rate unchanged at 4.25 % to 4.5 %, citing uncertainty caused by US tariff policy. Powell has made it clear that he will complete his second term, which ends on May 15, 2026.

CMG