News about Christine Lagarde

Four people close to the WEF told Reuters that its Board of Trustees could appoint Christine Lagarde as chair as soon as next month, though no final decision has been made. She is seen as having broad board support, and the board could elect her at its meeting on November 2 or set a vote so she can appear as designated chair at Davos in January. An early exit would come almost a year before her ECB term ends in October 2027, giving EU leaders a chance to pick her successor before Emmanuel Macron's term ends in May. Her departure would open a second vacancy on the six-member Executive Board after Isabel Schnabel's resignation, and chief economist Philip Lane is also due to step down in May.

Four people close to the WEF told Reuters that its Board of Trustees could appoint Christine Lagarde as chair as soon as next month, though no final decision has been made. She is seen as having broad board support, and the board could elect her at its meeting on November 2 or set a vote so she can appear as designated chair at Davos in January. An early exit would come almost a year before her ECB term ends in October 2027, giving EU leaders a chance to pick her successor before Emmanuel Macron's term ends in May. Her departure would open a second vacancy on the six-member Executive Board after Isabel Schnabel's resignation, and chief economist Philip Lane is also due to step down in May.

ECB President Christine Lagarde said on Saturday that a bond selloff is raising borrowing costs in the euro zone, which will curb growth and ultimately slow inflation. Bond yields have surged worldwide in recent weeks, with debt-laden France among the hardest hit, amid concerns over debt and inflation and growing competition for credit from AI investments. Lagarde said this will make it harder for consumers to absorb higher fuel prices from the Iran war, slowing growth and reducing pass-through more than the ECB projected in September. The ECB has raised rates twice in four months and a further hike is expected in December, which would lift its policy rate to 2.75%, a level it considers restrictive. Bundesbank president Joachim Nagel hinted at more tightening, while Olli Rehn warned of second-round effects from energy inflation.