Christine Lagarde, President of the European Central Bank (ECB), openly criticized the crisis of lost confidence facing the U.S. economy.
According to Bloomberg News on the 18th, President Lagarde pointed to the irregular economic policies of U.S. President Donald Trump as the reason for the recent strengthening of the euro against the dollar in an interview with French media La Tribune Dimanche on the 16th (local time).
She noted, “It is striking that there is a reverse phenomenon where the euro appreciates against the dollar at a time of uncertainty when the dollar should generally appreciate greatly,” adding, “This can be understood as a loss of confidence and uncertainty regarding U.S. policies in specific institutional sectors of the financial market.”
President Lagarde said, “In a situation where questions are raised about the rule of law, judicial system, and trade rules in the U.S., and uncertainties arise anew every day, it is natural for Europe to be perceived as a stable economic and political region with sound currency and an independent Central Bank.” She added, “This is not a threat to the eurozone economy but an opportunity,” urging EU leaders to accelerate the process of deepening the EU.
Regarding President Trump’s continuous pressure on the Federal Reserve (Fed) to lower interest rates, President Lagarde warned that it is a challenge to the autonomy of monetary policy authorities. She said, “The independence of the Central Bank is fundamental,” adding, “Every case in which the Central Bank has been subject to the influence of fiscal authorities in the past has never ended well.”