The Risks of Undermining U.S. Monetary Independence

Christine Lagarde, President of the European Central Bank, has issued a stern warning about the potential implications of removing key figures from the U.S. Federal Reserve. Lagarde's remarks on Monday highlighted the potential dangers posed to both the U.S. and global economies.

In a Radio Classique interview, she stressed the necessity of maintaining an independent monetary policy in the United States. Reducing this independence, she argued, could lead to severe economic imbalances given America's influence over the global market.

These statements come in the wake of ongoing attacks from former U.S. President Donald Trump on Federal Reserve Chair Jerome Powell, alongside attempts to dismiss Federal Reserve Governor Lisa Cook, amid disagreements over interest rate policies.

(With inputs from agencies.)