The threat posed by President Trump's tarriftariff regime is too great to be an inflation hawk, and the ECB made the right choice by cutting rates to give the economy some breathing room while Europe deals with the ramifications of it. In the face of a potential crisis, the ECB showed real leadership.
All is not well with the European economy, and an inflationary resurgence could batter an already flagging EU economy. 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.
There's a 1.1% chance that the Eurozone will collapse before 2030, according to the Metaculus prediction community.
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