AsianFin -- European Central Bank President Christine Lagarde on Monday warned that any move by U.S. President Donald Trump to oust Federal Reserve Chair Jerome Powell or Fed Governor Lisa Cook would pose a “very serious danger” to both the U.S. and global economy.
In an interview with French broadcaster Radio Classique, Lagarde stressed that the independence of the Fed is critical to economic stability. “If U.S. monetary policy were no longer independent and instead dependent on the dictates of this or that person, the consequences for the American economy — and by extension the world economy — could be very worrying, because it is the largest economy in the world,” she said.
Trump has frequently attacked Powell for not cutting interest rates more aggressively during his presidency and has threatened to remove him from office. More recently, he has also sought to dismiss Fed Governor Lisa Cook.
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