Lagarde’s remarks to Euronews follow her recent comments suggesting she might depart the ECB prematurely to engage in French domestic politics. When pressed on whether she would campaign directly or influence the discourse from her current post, she noted she would choose whichever capacity proves most efficient for championing European integration. Her stance arrives as the French political landscape faces significant upheaval, underscored by recent court rulings regarding the eligibility of far-right leader Marine Le Pen.

Beyond domestic politics, Lagarde addressed the ECB’s monetary policy in the face of rising euro zone inflation, which the bank attributes largely to the ongoing conflict involving Iran. The ECB recently initiated its first interest rate hike in nearly three years, aiming to curb price pressures. Lagarde maintained that the bank’s medium-term strategy remains consistent, projecting a return to the 2% inflation target within a three-year horizon. Meanwhile, financial markets continue to adjust as uncertainty grows over a potential U.S.-Iran agreement, fueling further speculation among traders regarding the pace of future ECB rate increases.