The next is the transcript of the interview with Christine Lagarde, European Central Financial institution president, that aired on “Face the Nation with Margaret Brennan” on Feb. 22, 2026.
MARGARET BRENNAN: Welcome again to ‘Face The Nation.’ We’re joined now by the top of the European Central Financial institution, Christine Lagarde. The ECB units rates of interest for a lot of international locations within the European Union, which is America’s largest buying and selling associate. It is nice to have you ever right here.
CHRISTINE LAGARDE: Nice to be right here, Margaret.
MARGARET BRENNAN: Properly, notably on this second in time the place there may be confusion over what occurs subsequent with international commerce. I noticed that the Chancellor of Germany, Germany is the largest financial system in Europe, he got here out and stated, tariffs hurt everybody, the largest poison for the economies of Europe and the U.S. is that this uncertainty about tariffs. Did you hear and get any readability from Ambassador Greer about what is going on to occur subsequent?
CHRISTINE LAGARDE: I am not so positive. And I let you know, I believe it is, it is critically essential that every one folks within the commerce, each exterior of america, but in addition in america, have readability about the way forward for the relationships. As a result of, you already know, it’s kind of like driving. You need to know the foundations of the highway earlier than you- you get within the automobile. It is the identical with commerce. It is the identical with funding. You need to know what the foundations are, and also you need to keep away from having to, you already know, come again and declare tariffs again. As a result of that is simply not the aim of individuals doing enterprise. They need to do enterprise. They do not need to go into authorized suit- authorized lawsuits. So I hope it’ll be clarified, and it’ll be sufficiently thought by means of, in order that we do not have, once more, extra challenges, and the proposals might be in compliance with the structure, in compliance with the legislation.
MARGARET BRENNAN: Properly, what you simply stated sounded similar to what one of many justices raised, I believe, it was Justice Gorsuch saying, like, that is why there may be the decision to place issues in legislation so that there’s readability for planning forward. I did not hear Ambassador Greer say with any certainty that they’ll attempt to put any of this stuff in legislation, simply use present rules, is what I under- heard him what I heard him say. However he did appear sure that the prevailing commerce offers will maintain. The EU and the US do have an settlement, 15% tariff ceiling in a latest commerce deal. However there’s an emergency assembly about all this tomorrow. Do you see that as disruptive that this may very well be in jeopardy actually?
CHRISTINE LAGARDE: I am now not commerce minister. I was. So I do not know what the end result of these conferences might be, however it’s not as if it was kind of simple 15% throughout the board. There are additionally exemptions, there are carve outs, there are areas for which there isn’t any tariffs. So I believe if it shakes the entire equilibrium which individuals within the commerce had received used to as a result of they continued buying and selling after the April selections and the July commerce association between the U.S. and Europe, however to kind of shake it up once more goes to result in disruptions within the enterprise for positive.
MARGARET BRENNAN: Properly, if you have been final yr in October, and I requested you concerning the influence of the tariffs, you stated the worldwide financial system had not but felt the ache. Did we keep away from that ache? Did the patron keep away from the ache?
CHRISTINE LAGARDE: I do not assume the shoppers prevented the ache. And I believe that there are various research which can be being accomplished now to find out what’s the influence and the place is the burden of tariffs. And I believe that whereas some some exporters have borne among the brunt, most of it was borne by the U.S. importers and finally, the U.S. shoppers, as a result of the U.S. importers have squeeze their margins a bit to soak up a few of these extra price as a result of tariffs. However there’s a level the place you do not squeeze your margins a lot, and it’s important to go it on to the shoppers. I believe that is what we’re. We’re starting to see, and, you already know, a number of research and really critical individuals are wanting into this. We are attempting to take a look at the information ourselves to verify what influence it has on commerce and on our economies. And it is a steady course of which is clearly going to be a bit disrupted by the present improvement.
MARGARET BRENNAN: I need to ask you about, as a central banker, your ideas on among the populism we’re seeing proper now. You took a lead position in defending Chair Powell, Jerome Powell, right here in america after President Trump’s Justice Division launched an investigation into him. You stated it was crucial to protect the independence of central banks with full respect for the rule of legislation and democratic accountability. We all know Powell is about to get replaced in Could by Kevin Warsh, somebody you additionally know out of your time as commerce minister. Do you imagine that he personally can resist political stress from the President?
CHRISTINE LAGARDE: Initially, I’ve huge respect, as you already know, for Powell, for Kevin Warsh and for fed chairs prior to now, and I am very proud to obtain an award tomorrow within the title of Paul Volcker. You recognize, for financial coverage, the rule of legislation is critically essential, and the independence of a central financial institution is critically essential. Now we have seen in historical past, now we have seen in literature, now we have seen in, simply, something that analyzes the exercise of a central financial institution, be it the Fed, be it the ECB, that the independence issues so much. Why is that? As a result of you do not need somebody who units rates of interest, who has in cost worth stability and monetary stability, you do not need that individual to be beneath political affect. And the selections that we make usually don’t influence straight away. They produce an impact 6, 12, 18 months, generally two years down the highway. Within the meantime, the political life continues, and now we have to be, in a approach, proof against that. That is why many central bankers around the globe signed this help to central financial institution independence as utilized to Chair Powell.
MARGARET BRENNAN It was an unimaginable assertion, as a result of often bankers need to keep out of that highlight, however you see an actual danger right here. And- and there may be concern about this populist wave, even in France, the far proper may win the French election subsequent yr. I’ve to ask you about these studies that you simply may be leaving the ECB early due to, mainly, an insurance coverage coverage to permit for the French president to pick a successor, quite than doubtlessly a far proper chief serving to to pick a head.
CHRISTINE LAGARDE: I am riveted to a mission, and my mission is worth stability, monetary stability. I need the euro, which we’re custodian of, to be robust and match for the longer term. I believe we have achieved so much. Inflation is at goal, progress is okay, not sensible, however resilient, 1.5%, and unemployment is on the lowest degree ever. However we have to consolidate all that. And my baseline is that it’ll take till the top of my time period. And electors in any nation on the earth make their decisions, and people decisions must be revered.
MARGARET BRENNAN: So, no- we aren’t answering on the leaving early, however you think- it appears like it should take extra work until the top of your eight yr term–
CHRISTINE LAGARDE: I am not achieved.
MARGARET BRENNAN: In a short time earlier than I allow you to go. How difficult is it to maintain leverage when Russia and China are attempting to keep away from European sanctions and American sanctions through the use of their very own forex? Is the West shedding its leverage as we glance in the direction of this warfare in Ukraine?
CHRISTINE LAGARDE: I believe our accountability is to ensure that our currencies are robust, that our cost programs are robust and unbiased, and that is actually one thing that we’re going to proceed doing for the explanations that you have talked about.
MARGARET BRENNAN: Christine Lagarde, thanks very a lot to your time this morning. We’ll be proper again.
