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Investing.com -- Isabel Schnabel, a board member at the European Central Bank (ECB), has suggested that the bank should halt its easing policy.
The ECB is currently on track to bring inflation back to its target of 2%.
However, Schnabel warns of new challenges that could potentially increase prices further, including those related to a global trade war.
Schnabel shared her thoughts on social media platform X, stating, "Disinflation is on track, but new shocks are posing new challenges."
She further explained that while tariffs may initially cause disinflation, they could lead to a rise in prices over the medium term. "Therefore, we should keep a steady hand," she added.
This suggests that the ECB should maintain a consistent approach and avoid further easing of its monetary policy.
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