ECB's Lagarde, Holzmann Address Trade War, Inflation Risks

European Central Bank President Christine Lagarde stated that while inflation is nearing the 2 percent target, there is still work to be done in managing price growth. In her comments on Irish radio, she emphasized the importance of a medium-term approach to maintaining this target and acknowledged that inflation data shows promise with a current rate of 2.2 percent in the eurozone. Lagarde also expressed concern about impending trade policies from the U.S., particularly the tariffs expected from President Trump, which she believes will have a detrimental effect on the global economy. She noted that predictability is lacking in the current economic climate, creating uncertainty for investors. ECB policymaker Robert Holzmann echoed these sentiments, warning that a potential trade war may necessitate unconventional monetary policies from central banks. Both officials stressed the need for careful navigation of the economic landscape amid these uncertainties.