ECB President: Independence is a prerequisite for a central bank to effectively perform its duties

In an interview with US media on August 24th, European Central Bank President Christine Lagarde stated that central bank independence is of "decisive importance" and warned that any interference with its independence could have serious consequences. Her remarks came amid recent pressure from US President Trump on the Federal Reserve.

△ ECB President Christine Lagarde

Lagarde noted that "if a central bank loses its independence, or if that independence is threatened, it becomes dysfunctional," leading to "instability and even worse." She emphasized that independence is a prerequisite for a central bank to effectively perform its duties.

Recently, US President Trump has repeatedly urged the Federal Reserve to cut interest rates and publicly attacked Fed Chairman Powell, even threatening to fire him. However, the Fed has maintained its benchmark interest rate at 4.25% to 4.5%, citing uncertainty caused by US tariff policy. Powell has explicitly stated that he will serve out his second term, which ends on May 15, 2026.

Prior to this, Lagarde and Powell attended the annual central bank meeting in Jackson Hole, Wyoming. Furthermore, Trump recently pressured Federal Reserve Board member Tim Cook to resign.