BUDAPEST (Reuters) -Central bank independence is being questioned in parts of the world and greater political influence over policy could undermined their ability to keep inflation down, European Central Bank President Christine Lagarde said on Monday.

It's a big week ahead as the U.S. Federal Reserve, European Central Bank and Bank of Canada hold their first meetings of 2025. Into the mix go earnings from heavyweights including Apple and Tesla, and likely market spikes from comments by new U.

The European Central Bank meets on Thursday for the first time since Donald Trump returned to office, leaving U.S. tariff threats looming over the euro zone's sluggish economy and potentially complicating the economic outlook.

Investors expect ECB policymakers to agree this week to another quarter-point rate reduction and further reductions at each of the three following meetings through June are increasingly likely.

Eurozone rate-setters are set to cut borrowing costs again this week, confident their efforts to lower inflation will remain on track despite the threat from US President Donald Trump's protectionist agenda.

According to the CME FedWatch tool, the Fed is certain to keep interest rates unchanged in the range of 4.25%-4.50%. Investors will pay close attention to Fed Chair Jerome Powell’s press conference to determine whether policymakers are comfortable with Trump’s call for immediate rate cuts.

Speaking to leaders at the World Economic Forum in Davos, Lagarde had to go onto the defensive in the face of criticism from a leading US financier.

Eurozone inflation fell to 2.4% in December 2024, but ECB chief economist Philip Lane cautions that services inflation and uneven growth persist. A "middle path" on interest rates and structural reforms is crucial for stability.

With the next two ECB cuts seen as done deals, consensus PMIs won’t move the needle Data has a chance to make a return as a driver of markets today with the eurozone flash PMIs offering a fresh take on economic sentiment amid the politically changing winds.

ECB's The Hundred teams could be sold to owners of the IPL signalling another step towards their global chokehold.

The balance of macroeconomic risks has shifted from concerns about high inflation to concerns about low growth,” said vice-president Luis de Guindos in a mid-January speech. December’s change in stance has not,

Central bank independence is being questioned in parts of the world and greater political influence over policy could increase economic volatility, European Central Bank President Christine Lagarde said on Monday.