Christine Lagarde, President of the European Central Bank, has voiced serious concerns regarding the increasing political interference in the operations of the U.S. Federal Reserve. Highlighting recent pressures reportedly exerted by then-President Donald Trump, Lagarde emphasized the potential risks such actions pose not only to American monetary policy but also to global financial stability. She underscored that central bank independence remains a cornerstone for effective economic governance worldwide, crucial for managing inflation and fostering market confidence.

Lagarde pointed out several key impacts stemming from political meddling in central banking:

  • Undermining the credibility of monetary policy decisions
  • Increasing market volatility and uncertainty
  • Weakening investor…