No she is not in charge of Germany or a major country but she will soon be in charge of the European Central Bank– the European version of the United States Federal Reserve. Her name is Christine Lagarde and she has won European Union support to become the first female President of the European Central Bank (ECB). It will be the first time a women has been placed in charge of all European banking, as the ECB is one of the largest financial institutions in the World.
The (ECB) is the central clearing bank for the euro (the European Currency) and administers monetary policy such as interest rates within the Eurozone which comprises 19 member states of the European Union and is one of the largest monetary operations in the world.
Prior to the ECB, Mrs. Lagarde was the managing director of the International Monetary Fund (IMF), already one of the world’s largest financial international organizations. During her term, the IMF lent over $1 trillion to its members– money Lagarde help guide to bailouts of countries such as Greece and Argentina. The IMF has a goal to promote global economic growth and financial stability, while encourage international trade, and hopefully reducing poverty. It is based out of Washington D.C.
“I am honored to have been nominated for the presidency of the European Central Bank,” Lagarde said. She also went on to say that she will ”temporarily suspend her activity at the IMF while the nomination process unfolds: In light of this, and in consultation with the ethics committee of the IMF Executive Board, I have decided to temporarily relinquish my responsibilities as managing director of the IMF during the nomination period.”
Lagarde would succeed current ECB president Mario Draghi, who has held the role since 2011 and whose term ends on October 31. Draghi leaves the position amid uncertainty for the Euro and European monetary policy; he has signaled interest rate cuts and a quantitative easing program despite the lowest unemployment levels in a decade and inflation running at barely half the ECB’s goal of 2%.
Even though she ran a trillion dollar government organization, the promotion to the European Central Bank is a significant step up. Lagarde’s primary focus must now be on the European economy that is currently being challenged by both slow growth and problem German banks. Her financial prowess could be challenged very quickly.