Donald Trump forced the hand of the European Central Bank (ECB). For its seventh consecutive meeting, the ECB reduced its interest rates in a fourth point on Thursday, April 17, this time to 2.25%. However, without the commercial war initiated by the president of the United States, he could have a pause, recognized to Christine Lagarde, his president: “There were several governors who, a few weeks ago, would have discussed in favor of a jump.”
On the other hand, American tariffs, who have thrown an “exceptional uncertainty” on the global economy, have pushed the Eurozone Central Bank to loosen their monetary grip a little more. Since June 2024, when interest rates were 4%, they have almost been reduced by half.
The truth, Lagarde admitted, is that the economic fog is practically complete. Tariffs imposed by the United States have already increased from 3% to a fury of 13%, but no one knows at what level they will end. A 90 -day negotiation period has begun, which ended in mid -July. The president of the Frankfurt institution recognized his “disbelief” in the initial measures of Mr. Trump, since they challenge all “conventional wisdom” with respect to global trade.
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