ECB President Christine Lagarde on EU-US Trade Relations

In a recent interview with CNBC, European Central Bank (ECB) President Christine Lagarde shared her optimism regarding the potential for constructive tariff discussions between the European Union and the United States. Lagarde highlighted the importance of these talks, noting the significant impact of US trade policy on the EU's economic outlook.

"The net impact of tariffs is yet to be determined," Lagarde stated, emphasizing the dual nature of their effects. Despite uncertainties, she reassured that a recession in the EU is not anticipated, though she acknowledged that negotiations might extend over the next 75 to 100 days.

Lagarde also took a moment to address the speculation surrounding US President Donald Trump's consideration to dismiss Federal Reserve Chair Jerome Powell, expressing hope that such a scenario would not unfold. She underscored the fairness of Europe's trade practices with the US and the necessity for careful deliberation in maintaining the US-EU relationship.