Lagarde: Possibly step down early as ECB president to enter French politics.

European Central Bank President Christine Lagarde has stated that she does not rule out the possibility of ending her current term early to enter French politics.

According to Bloomberg, when asked by Les Echos whether she would consider leaving office early if macro uncertainties subside, Lagarde responded: "It's possible." She said:

"I believe that during discussions about the French presidential election, there needs to be a European voice."

In the same exclusive interview with Les Echos, Lagarde reiterated her previous view:

"Since we are once again entering a period of turbulence, I believe that the captain of the European Central Bank ship should remain at his post."

For a long time, Lagarde has been regarded as an important potential candidate in French politics. However, she has previously described the position of French president as "a terrible job."

Lagarde's current term as ECB president ends in October 2027. She told Les Echos that in the coming months, "it is certainly possible" for her to have candid exchanges with some French presidential candidates. She said:

"If the debate ultimately presents a more narrow view of France's role in Europe, I think it is necessary to explain why that would be a path that would cost our country and all French people."

Lagarde believes the ECB's interest rate hike last month was the right decision

Lagarde also said in the interview that the ECB's decision to raise interest rates last month was correct.

She said: "We are convinced that we made the right decision. As early as April, the vast majority of the Governing Council was ready to act, but at that time we did not yet have all the necessary information."

In June, following the outbreak of the Iran war, the ECB became the first central bank among the G7 to start raising rates. The ECB said at the time that the shock was spreading throughout the economy and that the central bank could not tolerate inflation spiraling out of control, hence the decision to raise rates.

However, after the United States reached a peace agreement with Iran, international oil prices fell significantly, removing the main factor driving inflation upward. The latest data released on Wednesday showed that the slowdown in Eurozone inflation exceeded market expectations.

Nevertheless, Lagarde believes that the supply shock is still spreading to other parts of the economy, though no so-called "second-round effects" have yet appeared.

She said: "We are facing an external supply shock that is spreading to other parts of the economy. We have already begun to see its indirect effects. At the same time, we remain highly vigilant about the risk of second-round effects, although this has not yet occurred."

Risk Warning and Disclaimer

        Market risks exist, and investment should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment based on this is at your own risk.