Story perspectives

Lagarde to Step Down Early as ECB Faces Rising Yields

By Drooid · Oct 29, 2026 · How we work

Read the story

Story summary

Summary

ECB President Christine Lagarde announced she will step down on 7 February 2027, nine months early.
The ECB is confronting rising bond yields that increase borrowing costs for households and businesses across the eurozone.
The governing council gave Lagarde a standing ovation during the meeting that also set eurozone interest rates.
Potential successors mentioned include former Dutch central bank governor Klaas Knot and Spain’s former central bank governor Pablo Hernández de Cos.

History

Paul Volcker resigned as Federal Reserve Chairman in August 1987 after eight years of policy that lifted the federal funds rate to a 20 percent peak in June 1981 and cut inflation from a 14.8 percent high in March 1980 to below 3 percent by 1983. Nominated by President Jimmy Carter and renominated by Ronald Reagan, his actions triggered the 1980-82 recession but restored stability, clearing the path for Alan Greenspan.

1 of 2

Paul Volcker resigned as Federal Reserve Chairman in August 1987 after eight years of policy that lifted the federal funds rate to a 20 percent peak in June 1981 and cut inflation from a 14.8 percent high in March 1980 to below 3 percent by 1983. Nominated by President Jimmy Carter and renominated by Ronald Reagan, his actions triggered the 1980-82 recession but restored stability, clearing the path for Alan Greenspan.

1 / 2