The US President, Donald Trumpwith his increasingly intense attacks against US Federal Bank (FED) It can cause significant and global side effects on financial markets and the real economy, the ECB member warned Thursday in a speech in a speech in a speech in a speech. Olli Renn.

As the Reutersthe uncertainty around the Fed has increased this year, as Trump repeatedly criticizes its president, Jerome Powellwhile on Monday he announced that he was dismissing one of the members of the Board of Directors, the Lisa Cook.

“President Trump actually puts strong pressure on the US Federal Bank to reduce interest rates for some time“, Said the Governor of the Central Bank of Finland.

Fed’s independence has been an inviolable principle since the early 1980s, he added. “But now this principle is seriously shaken. This could have a significant, global impact on both financial markets and real economy“, Renn.

He also stressed that Europeans should take action to enhance global confidence in the euro as a safe currency in order to avoid undermining the independence of central banks in Europe.

“It is no coincidence that inflation in the euro area is currently on the target of 2% – this is directly related to independent decision making by the Central Bank“, He said.

The global hegemony of the dollar as a reserve currency has proven to be durable, and therefore, he said, it considers it unlikely a rapid weakening.

“However, I say it with a significant reservation: if the dollar’s institutional foundations collapse – I am referring to the principles of the rule of law and democracy, as well as to individual freedoms – then we could find ourselves in a different situation.”

Although growth in the euro area has proved more resistant to the expected, Rehn estimated that inflation would slow down under the target of 2% in the short term, due to the decline in energy prices, the strengthening of the euro and the slowdown of inflation in services.

“On the ECB Board of Directors we closely monitor the financial situation and we are ready to intervene if needed“, He concluded.