Lagarde Backs Powell’s Fed Leadership Amid Trump Criticism

European Central Bank (ECB) President Christine Lagarde voiced strong support for Federal Reserve Chair Jerome Powell, stating he is doing what is necessary to fulfill his duties and maintain financial and price stability in the United States.

“I am reassured by the talent and the competence of the chair of the Fed,” Lagarde said during an event hosted by The Washington Post. “He’s putting all his efforts and discipline into delivering on his mission.”

Lagarde’s remarks come amid repeated public criticism from former U.S. President Donald Trump, who has chastised Powell for not cutting interest rates. However, Trump recently said he has no plans to remove him from his position.

Highlighting Central Bank Independence

During her appearance on Wednesday in Washington, Lagarde emphasized the importance of central bank independence, warning against political interference.

“Whenever there has been political interference… it has been followed by declining growth and increased inflation,” she said. “This is not something anybody wants — and certainly not something that serves the mission.”

She also added that she holds “enormous respect” for Powell and believes he is “doing exactly what is expected of him to serve the American people.”