Optimism in Tariff Discussions

European Central Bank President Christine Lagarde shared her confidence in the potential for productive tariff discussions between the European Union and the United States during a recent CNBC interview. Highlighting the importance of these talks, Lagarde noted the significant impact US trade policies have on the EU's economic outlook.

Concerns Over Federal Reserve Leadership

Amidst the discussion on trade, Lagarde expressed hope that the dismissal of Federal Reserve Chair Jerome Powell by US President Donald Trump would not occur, emphasizing the need for stability in US economic leadership.

Trade Practices and Relations

Lagarde reassured that Europe's trade practices with the US are fair, stressing the necessity for careful attention to the US-EU relationship. She acknowledged the uncertainty surrounding the net impact of tariffs but remained optimistic about avoiding a recession in the EU, despite the potential for prolonged negotiations.