European Central Bank President Christine Lagarde used a Fox News interview on the sidelines of the Jackson Hole policy symposium to warn that economies can become “dysfunctional” when governments meddle in setting interest rates. “The independence of any central bank is critically important,” she said, recalling cases she witnessed at the International Monetary Fund where political interference undermined monetary policy. Lagarde’s comments come as U.S. President Donald Trump intensifies public pressure on Federal Reserve Chair Jerome Powell to cut rates and seeks to reshape the Fed’s Board of Governors. Trump has openly discussed replacing Powell and ousting Governor Lisa Cook, moves that would give the White House greater sway over U.S. monetary policy. Central bankers attending the Wyoming gathering echoed Lagarde’s concerns, according to interviews cited by Reuters. ECB Governing Council member Olli Rehn said politically driven attacks on the Fed have “a spiritual spillover to the rest of the world,” while Bundesbank President Joachim Nagel cautioned that independence “should not be taken for granted.” Officials warned that capitulation by the Fed could unsettle global financial markets, forcing investors to demand higher premiums on U.S. debt and prompting other governments to challenge their own monetary authorities. Some regulators have already advised banks to monitor dollar exposures in case political pressure on the Fed erodes its inflation-fighting credibility.