ECB President Highlights Risks of Trade War

In a revealing interview with France Inter, European Central Bank (ECB) President Christine Lagarde painted a grim picture of a potential trade war between the European Union and the United States, labeling it as a "lose-lose scenario." Despite the dire outlook, Lagarde sees a silver lining, suggesting that President Donald Trump's tariffs could serve as an opportunity for the EU to "show independence."

Inflation in the Eurozone: A Constant Battle

Turning the conversation towards inflation within the Eurozone, Lagarde emphasized the ongoing challenge to keep it "in check." The ECB aims for a durable reduction to its 2% target, a goal that requires "an interest rate that is carefully set," according to Lagarde.

Global Economic Impact of US Tariffs

Echoing Lagarde's concerns, ECB colleague Luis de Guindos warned that Trump's tariffs could have far-reaching negative effects, not just on the European and global economies but also on the United States itself, particularly in terms of economic growth.