ECB Braces for Tariff Tensions Amid Policy Decisions

The European Central Bank meets as Donald Trump returns to office, casting a shadow of U.S. tariff threats over the fragile eurozone economy. With rate cuts forecasted, the ECB faces questions on its future moves and the impact of potential U.S. tariffs on inflation and growth.

The European Central Bank is convening for the first time since Donald Trump's return to office, raising concerns over U.S. tariff threats that could complicate the eurozone's already sluggish economic outlook.

While traders anticipate further rate cuts are imminent, the focus is on whether the ECB will signal any new strategies moving forward. Expectations are that Christine Lagarde will suggest the potential for additional rate cuts.

The ECB faces critical questions, including the extent of rate reduction needed to stabilize the eurozone and the impact of tariffs on inflation. As rates approach the neutral level, the ECB's decisions will be closely watched amid global economic dynamics.

(With inputs from agencies.)