Lagarde Warns Trump’s Fed Interference and Tariffs Heighten Global Economic Risks

European Central Bank President Christine Lagarde issued a stark warning about the destabilizing effects of former U.S. President Donald Trump's attempts to influence Federal Reserve policy. "Monetary policy should never bow to personal dictates," Lagarde stated, referencing Trump's push to oust Fed Chair Jerome Powell and board member Lisa Cook. The remarks come as a U.S. court ruled most Trump-era tariffs illegal, adding what Lagarde called "a dangerous LAYER of uncertainty" to fragile global markets.

The ECB chief emphasized that Fed independence serves as a cornerstone of global financial stability. With the U.S. economy accounting for nearly a quarter of world GDP, political interference could trigger cascading disruptions across international markets—including cryptocurrency ecosystems that remain sensitive to macroeconomic policy shifts.

Separately, Lagarde confirmed the ECB has successfully anchored eurozone inflation at target levels. This monetary stability contrasts sharply with the brewing storm across the Atlantic, where trade and interest rate policies appear increasingly vulnerable to political winds.