ECB’s Lagarde Warns Trump’s Fed Meddling Poses "Serious Danger"

European Central Bank President Christine Lagarde has warned that President Trump’s attempts to interfere with the U.S. Federal Reserve pose a “serious danger” to both the American and global economy, Huileng Tan reported for Business Insider.

Lagarde's remarks follow Trump’s move to oust Fed Governor Lisa Cook last month over disputed mortgage-fraud allegations, which Cook denies. (Photo: Valeriano DiDomenico, World Economic Forum / swiss-image.ch Flickr) 

“If it were no longer independent … then I believe the balance of the U.S. economy, and consequently the effects this has on the entire world … would be very troubling,” Lagarde told Radio Classique.

She added that legal hurdles may still prevent Trump from seizing control.

Her remarks follow Trump’s move to oust Fed Governor Lisa Cook last month over disputed mortgage-fraud allegations, which Cook denies. Cook has filed a lawsuit to block her removal.

Analysts at Deutsche Bank in July called a potential Powell dismissal “one of the largest underpriced event risks” in markets. Ray Dalio warned a compromised Fed “would weaken the monetary order as we know it,” while JPMorgan CEO Jamie Dimon stressed the Fed’s independence is “absolutely critical.”