This archive report was first published on 19 October 2019.
Christine Lagarde, the newly appointed European Central Bank leader, has urged world leaders to act like grownups and negotiate a solution to the ongoing trade conflicts. In an interview set to air on Sunday night, Lagarde called for rational decisions and warned of the devastating impact of the trade war on the global economy.
Speaking freely as she takes on her new role, Lagarde criticized Trump's Twitter habits, saying that market stability should not be the subject of a tweet here and there. She emphasized the need for consideration, thinking, and quiet, measured, and rational decisions.
Lagarde, who previously led the International Monetary Fund for eight years, warned that Trump's trade war with China will give the global economy a big haircut. She urged policymakers to sit down like big men, put everything on the table, and try to deal bit by bit, piece by piece, to achieve certainty.
As she took a swipe at Trump's criticism of Federal Reserve Chairman Jerome Powell, Lagarde emphasized the importance of a central bank governor's independence. She said, "A central bank governor does best his job if he is independent."
"It requires consideration, thinking, quiet and measured and rational decisions," she said of Trump in the interview. Published on October 19, 2019, at 6:59 PM UTC.
