The head of the European Central Bank refused to be bullied into changing policy Thursday following comments by German Chancellor Angela Merkel regarding her concerns that the central bank's loose monetary policy could lead the global economy into another, bigger crisis over the next decade.
ECB President Jean-Claude Trichet said Thursday at an ECB press conference he had spoken to the Chancellor on the phone Wednesday and had been assured that she was not trying to challenge the ECB's independence.
"We are fiercely attached to independence," Trichet said. "We have a fierce, fierce attachment to delivering price stability," he told CNBC's Silvia Wadwha (watch the interview in the video below).
Trichet said he refused to cut interest rates in 2004 when European leaders where desperate to force the value of the euro lower and maintained that his current policy of buying up $85.7 billion of covered bonds to try and boost liquidity would not be influenced by any national leader or government.