ECB Official Highlights Risks of Trade War

In a significant address at a conference in Amsterdam, Klaas Knot, a key figure on the European Central Bank (ECB) Governing Council and President of De Nederlandsche Bank (DNB), raised alarms about the long-term effects of the global trade war. Describing it as a "negative supply shock," Knot emphasized the potential for inflationary pressures reminiscent of 2022.

Call for Vigilance and Strengthening the EU Market

Knot urged the European Union to bolster its internal market to mitigate these risks. "The introduction of global tariffs by the United States administration is likely to be inflationary," he stated, highlighting the need for vigilance to prevent a repeat of past economic challenges.

Upcoming ECB Meeting

Additionally, Knot mentioned that the ECB would not present new inflation and growth projections at its forthcoming meeting, signaling a cautious approach in uncertain times.