Lagarde says early ECB exit no option with clouds on horizon

President Christine Lagarde said an early exit from the European Central Bank isn’t currently an option for her in the face of the economic crisis brought on by the Iran war.

“When there is big clouds on the horizon, the captain does not leave the ship — and this captain is not going to leave the ship, because I see clouds,” Lagarde said Tuesday in an interview with Bloomberg TV in Washington.

The 21-nation euro economy is facing an uncertain future with peace in the Middle East elusive and a truce between the US and Iran expiring next week. A blockade of the Strait of Hormuz, a key passageway for oil and gas shipments from the region, is keeping oil and gas prices elevated, raising the risks of higher inflation and weaker growth.

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The International Monetary Fund sharply lowered its outlook for the euro zone earlier on Tuesday and warned of a global downturn if the conflict drags on.

“When you see major disruption, the energy supply being reduced, when you see threats to growth, upside risk to inflation — these are serious matters that we have to be attentive to,” Lagarde said.

The Iran war and her commitment to spearhead the ECB’s response ends speculation about a premature departure, at least for now. Rumors about Lagarde leaving before her term ends next October started early this year after French central bank chief Francois Villeroy de Galhau announced his resignation — a move that will allow Emmanuel Macron to replace him before presidential elections in spring 2027.

Previous attempts by Lagarde to push back haven’t fully quelled rumors. She said in a Bloomberg TV interview aired in early 2026 that she’s “not a quitter,” and followed up in February arguing that her “baseline” was to stay on.

© 2026 Bloomberg

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