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Joachim Nagel, a senior member of the European Central Bank’s Governing Council, has warned that public mistrust in official data and political pressure on central banks could lead to financial instability. He called trustworthy statistics “the backbone of sound monetary policy,” saying no country can maintain stability when citizens doubt the numbers guiding decisions.
Speaking at meetings in Washington and New York, Nagel said growing political interference in statistics threatens the integrity of entire economies. He pointed out that in several countries, leaders have begun attacking statistical agencies when reports contradict their policy narratives. According to him, the moment figures are adjusted to please governments, the credibility of institutions collapses.
Nagel referred to recent events in the United States, where President Donald Trump removed the head of the Bureau of Labor Statistics after weak employment numbers and major revisions. Reports also suggested Trump tried to dismiss Federal Reserve Governor Lisa Cook while publicly criticizing Fed Chair Jerome Powell. Nagel said such actions blur the line between analysis and politics, a move that always carries economic costs.
He explained that when leaders shape policy to match political convenience rather than data, financial confidence begins to break down. Without independent information, markets lose their bearings, and risk grows across the system.
Nagel reminded his audience that every monetary authority depends on trust. Once investors or households suspect numbers are manipulated, interest-rate signals lose meaning. The result is higher borrowing costs, sharp volatility, and fading confidence in official forecasts. History, he said, offers many examples, when independence is compromised, inflation and disorder soon follow.
He added that the link between credible data and central-bank autonomy is unbreakable. If politicians pressure agencies or influence policy boards for short-term gains, they weaken the very checks designed to prevent crises. “Interference has consequences that extend far beyond one government’s term,” he warned.
Nagel urged countries to defend the people producing data and the institutions interpreting it. Replacing officials who deliver unpleasant truths, he said, may calm headlines briefly but
damages economies for years.
Beyond domestic policy, Nagel urged Europe to become more assertive in dealing with China. Speaking in Washington, he remarked, “China needs Europe more than Europe needs China. We are four hundred fifty million people and a strong economy.” He argued that Europe should protect its industries and act with confidence in trade negotiations.
Nagel said the region must stop waiting for others to guard its markets and instead view its internal economy as its strongest asset. His comments followed new tariff tensions between Washington and Beijing, which have redirected Chinese exports toward Europe, often sold below local production costs. Can economies remain stable when politics dictates the numbers that guide policy? Nagel’s warning suggests the answer may soon decide the future of global financial trust.
Joachim Nagel’s warning underscored that political pressure on central banks and unreliable data can destabilize economies. He urged Europe to defend market independence, strengthen its internal economy, and protect statistical integrity to ensure stability and public confidence in monetary systems.
