World Economic Forum
Lagarde said in an interview with France’s Radio Classique that if US President Donald Trump manages to take control of the Fed, it would be a “serious concern.”
She added that this would be hard because Trump would need to control most of the Fed officials who make decisions about interest rates.
But if he does manage it, the Fed's ability to make its own decisions about interest rates could be in danger, she said.
Lagarde warned that this situation would have major consequences, not only for the US but also for the global economy, because the US plays a big role in the world financial system.
Trump has been criticizing the Fed's leadership recently, and wants it to lower the base interest rate, which is currently at 4.25-4.5% per year.
Last week, he fired Lisa Cook, a member of the US Federal Reserve Board, saying she was involved in mortgage fraud. However, no official charges were made against her. Cook has since taken legal action against Trump to challenge her dismissal.
source: reuters.com
She added that this would be hard because Trump would need to control most of the Fed officials who make decisions about interest rates.
But if he does manage it, the Fed's ability to make its own decisions about interest rates could be in danger, she said.
Lagarde warned that this situation would have major consequences, not only for the US but also for the global economy, because the US plays a big role in the world financial system.
Trump has been criticizing the Fed's leadership recently, and wants it to lower the base interest rate, which is currently at 4.25-4.5% per year.
Last week, he fired Lisa Cook, a member of the US Federal Reserve Board, saying she was involved in mortgage fraud. However, no official charges were made against her. Cook has since taken legal action against Trump to challenge her dismissal.
source: reuters.com