According to ChainCatcher, citing Jinshi News, European Central Bank President Lagarde clearly stated that she hopes U.S. President Trump will not fire Federal Reserve Chairman Powell. When asked whether this would constitute a major market risk, Lagarde said: "I sincerely hope it will not happen... This should not become a real threat."
Faced with further questions from reporters, Lagarde refused to comment on the market impact of a "hypothetical scenario" and emphasized that she firmly believes this is "not under consideration".
Recently, Trump has been continuously pressuring Powell to cut interest rates, warning that otherwise it would lead to economic slowdown. Powell countered last week, saying that the trade war could simultaneously suppress growth and drive up inflation, and reiterated that the Federal Reserve will maintain policy patience.
