The president of the European Central Bank, Christine Lagarde, said on Tuesday that she hoped that US President Donald Trump dismissed the president of the federal reserve Jerome Powell was not a scenario that was on the table.
Sara Eisen from CNBC to CNBC if Trump finding a way to withdraw the Central Bank chief was a significant risk for the markets, Lagarde said: “I certainly hope … I hope it is not a risk.”
Trump appointed Powell in his first presidential term, but is now look in If the head of the Fed can legally be dismissed before the expiration of his mandate.
Speaking on the sidelines of the Spring Meetings of the World Bank of the IMF, Lagarde told CNBC that she would not comment on the implications on the market of an event that she hoped “not on the table”.
Trump was acceleration Power pressure to reduce interest rates, warning the American economy could slow down otherwise.
Powell in turn last week suggested This Trump trade war could weigh on fuel growth and inflation. He has not indicated his expectations for the interest rate to come, but noted that “for the moment, we are well placed to wait for greater clarity before considering any adjustment to our political position”.
Lagarde told CNBC on Tuesday: “We are both used to political pressure in one way or another.”
“I have immense respect for the work he does, and for his loyalty to his work and to be as diligent, disciplined as possible to put his mandate. For him, I think, I am sure that it is for me, the mandate is our compass. We must include our mandate.”
The ECB and the Fed diverged on monetary policy.
The central bank of the euro zone systematically reduced rates as inflation is approaching its target by 2% and the economic growth of the block seems dull. The Fed has kept the stable rates this year, after promulgating three consecutive drops between September and December from last year.
The ECB last week Reduce interest rates By 25 other base points, making its third reduction of 2025 and its seventh garnish since it started to soften monetary policy last summer. In its monetary policy declaration, the Central Bank has warned of a perspective of weakened growth linked to the uncertainty of world trade has delighted the price policy of Bytrump.
Trump quoted BCE level drops during his recent attacks on Powell. On Monday, he posted on his Truth social platform that the central bank had already reduced the prices seven times, and again the Powell brand “Mr. Too late. “”
EU-US commercial negotiation
Lagarde also discussed the impact of Trump's pricing policy, saying that the price rate currently faced with the euro zone was higher than the Cover 10% Now imposed on American trade partners because it included 25% of steel, aluminum and cars. The EU could be slapped with universal prices of 25% without agreement.
“I am sure there is a range of negotiations. It is the nature of decision -makers to want to sit and discuss their case and to emphasize their The imperatives, their red lines, their vulnerabilities and I am sure that there can be a dialogue, “said Lagarde.
“I would be surprised if there was not such a thing,” she added.
EU has Currently interrupted His first slice of counter-tale, a response to rates on metals, while he hires talks.
Lagarde said she disagreed with Trump's point of view according to which the EU deals with the United States unfairly on trade Due to its surplus of goods, noting that the relationship has also extended foreign direct services and investments.
“There is so much joint interest” between the United States and Europe, she said. “There can be sectors where serious negotiations must be made, but it is as always with trade … It's not only on one side, it's on both sides.”
