Lagarde Says Trump Should Stop Criticizing the Fed With Tweets

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Lagarde Says Trump Should Stop Criticizing the Fed With Tweets(Bloomberg) — Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.Incoming European Central Bank President Christine Lagarde said central banks best operate in a regime of independence and President Donald Trump shouldn’t interfere with the U.S. Federal Reserve.“Market stability should not be the subject of a tweet here or a tweet there,” Lagarde said in an interview with CBS ‘60 Minutes’ correspondent John Dickerson to be aired Sunday. It requires thought and consideration, she said.Lagarde described the job of central banking as similar to “navigating a plane” with policy makers having “to watch everything.”Leaning on the Fed to lower rates now could be inappropriate, she suggested. When the unemployment rate is so low — now 3.5% in the U.S. — “you don’t want to accelerate that too much by lowering interest rates because the risk you take is that then prices begin go up.”Trump has relentlessly attacked the Fed for its policies. “Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!” he tweeted Oct. 1.Lagarde was interviewed by CBS last month at her home in Normandy and at the International Monetary Fund headquarters in Washington D.C., according to a preview of the segment released by the network. CBS said Friday that Lagarde also spoke about Trump’s trade war with China, imploring world leaders to resolve their differences. “My very, very strong message to all policymakers is please sit down like big men, many men in those rooms and put everything on the table, and try to deal bit by bit, piece by piece, so that we have certainty,” CBS quoted Lagarde as saying in the release.To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.netTo contact the editors responsible for this story: Alister Bull at abull7@bloomberg.net, Margaret CollinsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.


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