With her confirmation to succeed Mario Draghi as president of the ECB virtually assured, Christine Lagarde will resign from her position as the head of the IMF later on September 12th.
Today I informed the #IMF Board that I will resign as Managing Director of the International Monetary Fund, effective September 12. It has been a privilege to serve our 189 member countries with the devoted staff of this institution. https://t.co/WLso6ydrTE— Christine Lagarde (@Lagarde) July 16, 2019
“I have met with the Executive Board and submitted my resignation from the Fund with effect from September 12, 2019. The relinquishment of my responsibilities as Managing Director announced previously will remain in effect until then. With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor.
The Executive Board will now be taking the necessary steps to move forward with the process for selecting a new Managing Director. David Lipton remains our Acting Managing Director.”
Following her nomination by the European Council, Lagarde temporarily relinquished her duties at the IMF.
I am honored to have been nominated for the @ECB Presidency. In light of this, and in consultation with the Ethics Committee of the IMF Executive Board, I have decided to temporarily relinquish my responsibilities as IMF Managing Director during the nomination period.— Christine Lagarde (@Lagarde) July 2, 2019
Despite having no experience with central banking and no formal economics training, Lagarde received the endorsement of a group of European finance ministers last week. She will now face a vetting session and confirmation hearing in the European Parliament.
Should she be confirmed, she will take over from Mario Draghi on Nov. 1. It's widely believed that she will carry over the same uber-dovish policy stance that recently prompted Draghi to declare that the ECB will use any and all tools to bolster growth and inflation.