it would represent a "very serious danger" to the global economy. Christine Lagarde said if the Fed was forced to respond to political diktats, it would have a "very worrying" impact on economic stability in the US, and therefore in the rest of the world as well.

Since coming to office, Trump has launched repeated attacks on the Federal Reserve's chair, Jerome Powell. Last month, he attempted to fire one of its governors, Lisa Cook. But Lagarde emphasised that it would be "difficult" in practice for the president to exert his will. The Federal Reserve is the central bank of the US and its main job is to promote employment and keep prices stable. With these goals in mind, it sets interest rate policy - and it is meant to be independent of the US government.

However, its decisions have frequently attracted the ire of President Trump, both during his first term and since he returned to power in January. He has made it clear on numerous occasions that he would like to see big cuts in US interest rates, which he hopes would boost economic growth and lower the government's own borrowing costs. The Federal Reserve's current target for its main interest rate is 4.25% to 4.5%. Trump wants that reduced to less than 1%.

However, the Fed has left rates on hold since December last year due to lingering concerns about US inflation, in particular whether Trump's tariffs could result in higher prices. A cut is widely expected later this month but is highly unlikely to be large enough to mollify the president. The result has been a concerted attack by Trump on the Fed's leadership. (BBC/ Getty Images)