ECB on High Alert Over U.S. Tariffs and Market Volatility

In a recent statement, European Central Bank (ECB) President Christine Lagarde emphasized the ECB's preparedness to utilize all available instruments to safeguard price and financial stability. This comes in response to the heightened tensions following the imposition of tariffs by the United States.

Lagarde highlighted the ECB's vigilant monitoring of the markets, acknowledging a "degree of volatility" but reassuring that market infrastructure and operations, including those of bond markets, remain orderly.

Exchange Rates and Inflation Under Scrutiny

The ECB President also pointed out the bank's attention to the potential impacts of exchange rate fluctuations on inflation. However, she chose not to delve deeper into the recent volatility observed in the foreign exchange markets, leaving markets and analysts speculating on the ECB's next moves.