European Central Bank trims interest rates after inflation dips below target
CNBCJUN 2
ThisThe ratethreat cutposed exposesby EuropePresident Trump's economictarrif weaknessregime andis dependencetoo ongreat artificialto stimulus.be Whilean inflation hawk, and the ECB claimsmade victorythe overright inflation,choice by cutting rates to give the continuedeconomy needsome forbreathing aggressiveroom monetarywhile easingEurope revealsdeals underlyingwith structuralthe problemsramifications thatof lowit. ratesIn cannotthe solveface long-termof a potential crisis, the ECB showed real leadership in the face of a market shock.
All is not well with the European economy, and an inflationary resurgence could batter an already flagging EU economy and plunge the continent back into widespread inflation. The ECB must make its decisions based solely on the facts, and not on politics or remote fears, especially as growth could stagnate if defense spending tapers off.
Stateside, Fed Chair Jerome Powell is clearly trying to swim against the tide for no good reason. In the face of weaker U.S. economic numbers, the Fed should follow the lead of the ECB and lower interest rates. The hawkish approach of Powell is making the U.S. a global outlier when it comes to monetary policy.
There is a 25% chance that an attempt will be made to fire Jerome Powell before the end of his term, according to the Metaculus prediction community.