President of the European Central Bank, Christine Lagarde, stated that her main plan is to stay in her position until the end of her current term to strengthen the gains achieved in the eurozone under her leadership, both in progress towards reaching the target inflation rate and in maintaining strong economic growth. In an interview with CBS News, she added that there are many studies being finalized now to determine the impact of US tariffs, pointing out that it is the American consumer who bears the burden of those tariffs. At a time of confusion about the future of global trade, the chancellor of Germany, Europe's largest economy, stated that tariffs harm everyone, and the biggest threat to the economies of Europe and the United States is the uncertainty regarding tariffs. When asked if she had heard any clarification on what will happen, Lagard said she is not sure, but she believes it is extremely important for everyone working in trade, both inside and outside the United States, to have a clear understanding of the future of relations. She compared it to driving a car; you need to know the rules of the road before you get in the car, the same applies to trade, and the same applies to investment. When asked if she thinks this could actually pose a threat, Lagard said she is not currently the Minister of Trade, she was one in the past, so she does not know the outcome of the meetings between Americans and Europeans. She believes it's not just about the 15% tariffs, there are also exceptions, there are special exceptions, and there are areas where there are no tariffs, so she thinks this will affect the balance that trade workers were used to, as both sides continued to trade after the April decisions and the US-Europe trade agreement in July. When she was in the US last October and asked about the impact of tariffs, she said the global economy had not yet felt the pain. She was asked if we have avoided this pain and if consumers have avoided it. Lagard said she does not think consumers have avoided the pain, and she believes there are many studies being finalized now to determine the impact of tariffs and where the impact is. While some exporters have borne some of the burden, most of it has been borne by American importers, and ultimately American consumers, because American importers have squeezed their margins a bit to absorb some of these additional costs due to tariffs. She also played a leading role in defending Federal Reserve Chairman Jerome Powell after the Department of Justice began an investigation into him. She was asked if he can personally resist political pressure from the president (Donald Trump). Lagard said first and foremost, she has great respect for Jerome Powell and former Federal Reserve chairmen, and she is very proud to have received the 'Paul Volcker' award. For monetary policy, the rule of law is of paramount importance, and the independence of the central bank is of paramount importance. We have seen in history, and we see, that the work of any central bank, whether it is the Federal Reserve or the European Central Bank, depends on the independence which is extremely important, why? Because you don't want the person who sets interest rates and is responsible for price and financial stability to be under political influence. Bankers usually prefer to stay out of the spotlight, but she sees a real danger here. Lagard said she is committed to her mission, and her mission is price stability and financial stability. She wants the euro, which we are stewards of, to be strong and fit for the future. She believes they have achieved a lot, inflation in Europe is at the target level, growth is good and flexible at 1.5%, unemployment is at an all-time low, but we need to build on all of that, and my base case is that it will take until the end of my term.
