ECB’s Christine Lagarde says US tariffs will actually ease inflation in Europe, praises Fed’s Powell

Christine Lagarde noted that US tariffs may lower inflation in Europe, provided the EU refrains from retaliating. She emphasized the unpredictable nature of these tariffs while discussing potential flooding of the European market with Chinese goods, which could lead to price decreases.

The ECB might reduce its growth forecasts due to tariff effects on business activity. Lagarde expressed confidence in Jerome Powell, commending his dedication to financial stability despite external pressures. She warned against political interference in central banking, emphasizing its detrimental effects.