European Central Bank president Christine Lagarde has warned that undermining central bank independence could unleash “dysfunction” and “instability,” issuing her remarks in the United States at a time when President Donald Trump is intensifying pressure on the Federal Reserve to cut interest rates.Speaking in an interview aired on Fox News after attending the Jackson Hole meetings in Wyoming with Federal Reserve chair Jerome Powell, Lagarde said such independence is “critically important.”“I have seen close hand what happens when a central bank stops being independent or when its independence is under threat,” said Lagarde, recalling her experience leading the International Monetary Fund between 2011 and 2019, AFP reported. “It becomes dysfunctional, it starts doing things that it shouldn’t do. And the next step is really — yes, it is disruption. It is instability, if not worse.”Since returning to office in January, Trump has repeatedly demanded that the Fed lower rates to ease borrowing costs and accelerate growth. With Powell holding policy steady for months, the president has openly sought to weaken his standing in an effort to hasten his exit.Powell’s term runs until 2026, and a US president cannot remove a Fed chair without cause. Yet Trump has widened his campaign by targeting other members of the Federal Reserve Board. He has sought to appoint allies aligned with his economic vision and recently called for the resignation of Fed governor Lisa Cook, accusing her of falsifying documents to obtain a mortgage.Lagarde’s warning, delivered on a network popular with Trump’s conservative base, underscores growing international concern that political pressure on the Fed could spill into broader economic risk.