ECB President Confident in Tariff Discussions with US

In a recent interview with CNBC, European Central Bank President Christine Lagarde shared her optimism regarding the potential for constructive tariff discussions between the European Union and the United States. She highlighted the importance of maintaining a fair and balanced trade relationship, despite the uncertainties surrounding US trade policies.

Concerns Over US Political Decisions

Lagarde also expressed her concerns about the potential dismissal of Federal Reserve Chair Jerome Powell by US President Donald Trump, hoping such a scenario remains "not on the table." She underscored the significance of political stability in ensuring economic predictability and growth.

Impact of Tariffs on EU Economy

While acknowledging the mixed effects of US trade policies on the European outlook, Lagarde reassured that the EU is not facing a recession. However, she noted that tariff negotiations could extend for another 75 to 100 days, emphasizing the need for patience and careful negotiation to protect mutual interests.