ECB president Lagarde to step down early

What they're saying: "It has been a source of great pride to serve this institution," Lagarde said on social media announcing her departure. "I thank all of those who have supported me on this journey over the past seven years."

The big picture: Lagarde has led the ECB through the COVID-19 pandemic, Russia's invasion of Ukraine and the inflation surge that followed, overseeing an aggressive cycle of interest rate hikes and subsequent cuts.

The intrigue: Lagarde's early exit comes amid speculation that she could become the next chair of the World Economic Forum, which organizes the annual Davos gathering.

• Reuters reported earlier this month that the WEF could appoint Lagarde as soon as November.

What to watch: Lagarde's departure also allows European leaders to choose a successor before France's presidential election, potentially giving outgoing President Emmanuel Macron a say in the appointment.

• European governments have already been negotiating over who should succeed Lagarde, alongside appointments to other senior ECB positions, the Financial Times reported last month.
• The talks have involved competing national interests, with officials seeking a broader agreement that would distribute top jobs among different countries.