European Central Bank Executive Board Member: U.S. Tariffs Weighing on Economic Growth, Further Rate Cuts Needed

BlockBeats News, May 9th — European Central Bank (ECB) board member Olli Rehn stated that due to the Eurozone economy not yet feeling the full impact of U.S. tariffs, he expects inflation to continue to slow down, but the ECB must further lower interest rates. He mentioned that although economic activity initially showed strong performance, recent geopolitical trends, including U.S. President Trump's trade threats, have been bad news. At the same time, he saw "clear anti-inflationary forces" at work. He stated, "For me, the decision in June is very clear; we need to cut rates again." He said, "It is possible to cut rates again after June," although the timing is not yet clear. Since June last year, the ECB has cut rates seven times, with officials stating that they are prepared to take more measures as U.S. tariffs threaten economic growth. (FXStreet)