Lagarde's Inflation Optimism: Euro Zone Nears Target

Christine Lagarde, President of the European Central Bank, announced that the euro zone is nearing its medium-term 2% inflation goal. She highlighted the need for vigilance on services inflation, currently at 3.9%. Lagarde also cautioned against trade retaliation with the U.S.

Christine Lagarde, the European Central Bank (ECB) President, asserted that the euro zone is "very close" to achieving the ECB's medium-term inflation target, as reported by the Financial Times.

In December, Lagarde mentioned potential interest rate cuts if inflation continued to move towards a 2% target. She emphasized vigilance on services inflation, which remains at 3.9%, close to 4%.

Lagarde opposed retaliation against U.S. tariff threats, arguing that such trade conflicts harm the global economy. Retaliation was deemed a poor approach by Lagarde during a period of recovering economic dynamics.

(With inputs from agencies.)