Writing: Christine Lagarde “faces the nation with Margaret Brennan,” Oct. 19, 2025

The following is the text of the interview with Christine Lagarde, President of the European Central Bank, based on “face the nation with Margaret Brennan” on Oct. 19, 2025.

Margaret Brennan: Joining us now is the President of the European Central Bank, Christine Lagarde. The ECB sets interest rates for many countries in the European Union, which is America’s largest trading partner. It’s good to have you here.

Christine Lagarde: dear return, Margaret.

Margaret Brennan: From where you live, how would you describe the state of the global economy?

Christine Lagarde: In transition.

Margaret Brennan: Change.

Christine Lagarde: the change, I think is due to several things. The first is payments, which have changed the global trading map and re-invigorated new relationships and changed the way we sell. I think the second major change is the impact of artificial intelligence on everything we do from data management to analytics and everything in between.

Margaret Brennan: Absolutely, and it’s changing how we get the information itself –

Christine Lagarde: – Yep. –

Margaret Brennan: – To show what’s going on, but the stock market has been up and down. I want to talk to you on the other side of this trade break about some special things about these trade wars and what else you’re seeing in Europe, but we’re going to take a quick break here. And we have a lot of questions, but we should be back in a moment.

Margaret Brennan: Welcome back to face the nation. We return to our interview with the European Central Bank’s Christine Lagarde. He said the economy has been transformed. S & P prices around the world will cost global businesses up to $1.2 trillion this year, with most costs passed on to consumers themselves. He said many economists overestimated the impact of Trump’s taxes. Does that mean you think we passed the risk of the accident or are we still going to feel the pain?

Christine Lagarde: I think we are about to feel the pain. What we see, I’ll give you some numbers. From Europe to the United States, our goods to US consumers had 1.5 tariffs. With the fee determined by the US Administration, it has reached 13%. So the question is, where does this 11-ish% point go? Currently, it is one third of the offerer, so the European company, one third of the US importer and one third of the buyer. What will happen, however, is that this two-thirds carried by two companies, in fact, the exporter, is based on reducing their marriages. How long will it take to reduce the line, which should be seen. And if they don’t, because it’s too tight, then it’s up to the buyer. So it is a question of time.

Margaret Brennan: How much can they pay attention to –

Christine Lagarde: – Yep. –

Margaret Brennan: – It’s to their advantage before that. Yes, there are talks going on, we understand, between the two largest economies in the world. Treasury Treasurer Scott Bessent said on social media that he will meet with the Vice Premier of China in the coming days. This is after he called the Nothinatiator to boil recently, and President Trump said that starting November 1st there will be new tariffs in retaliation for China’s restrictions. This is the largest economy in the world. Where is this going? How damaging is this?

Christine Lagarde: First of all, I would limit the position a little bit at the moment because this is like a negotiation on both sides. Normal. You show off your muscles and say you’re ready to kill. I’m expanding, of course. But people will have to come to the table because it is in the interest of both economies, despite the hatred that exists between the two. But China is using the advantage that it has built up over time by accumulating rare earths and methods of analyzing rare earths and selling them to the rest of the world. They have a very strong, very strong trade position and they will use it, that’s why I think that on the other side the buyers, that is, Europe and the power to join on the other side of the table of trade power.

Margaret Brennan: Yes, certainly on that point, there has been frustration on the American side of it that Europe has never been in lockstep with the United States when it comes to China. That China is gaining power over Europe here.

Christine Lagarde: Well, China right now has benefited from a lot of foreign countries. And I think in front of the strange world, Europeans and Americans are in the same boat and ride the same way.

Margaret Brennan: But it’s another thing you see –

Christine Lagarde: – I think, you know, you know, it’s not for me to say that I’m a moderate, but the European administration and the US administration see it differently. I think it is the US that will see the army of the blanket. I think Europeans are very interested in looking at certain industries or sectors where they think it will make a difference. So it’s a tactical question that they’ll be discussing, I’m sure.

Margaret Brennan: So you just said that you WANT investors to question whether the dollar will still accept its status as a safe haven currency. I mean, the American Dollar is one of the most powerful weapons, without a doubt, that the administration should use. Do you think it is the rise of cryptocurrency that is more threatening than that or why are you worried?

Christine Lagarde: I see signs that the attractiveness of the dollar has been produced a little, and the future will mean that there is more erosion than that. But if you look at the rise of cryptos, number one, when you look at the price of gold. Gold is generally, in any case, the ultimate safe haven. The price of gold is up more than 50% since the beginning of the year. –

Margaret Brennan: – So people are worried. –

Christine Lagarde: – That is a clear sign that the confidence of the money reserved by the dollar has been, is and will continue to be, increasing a little. In addition to this, we have seen money flow out of the US and into other areas, including Europe. So, you know, with a trust currency you really need a few things. You need geopolitical credibility. You need the rule of law and strong institutions. And you need, I would call it, a strong enough military. I think at least one account and possibly two, the US is in a very prominent position, but it needs to be very careful because those positions explode over time. We’ve seen it in bad pound, you know, back to back, after the war. But it happens gently, gently, you don’t see it and it happens suddenly. And we’re seeing some interesting signs, which is why I think having a strong institution with the Fed, for example, is important. Having a reliable position when trading is important. So volatility, uncertainty, as far as management is concerned, is not good for the dollar.

Margaret Brennan: Just in Ukraine, President Zelenskyy said he spoke to you recently about using frozen Russian assets. What is the best use in your view?

Christine Lagarde: I think a good use would be to have a working loan that would use the cash balances as a partnership. And I think that the power of the program should be based on everyone who owns Russian assets to do the same thing. So if all of those countries have assets, they have monetary ratios that are available as contact and similar ways to borrow money from Ukraine to be sent back to Russia, then I will go to Russia to bring it to the table.

Margaret Brennan: Christine Lagarde, always great to hear your input. We will go back.