Nagel voices concerns over US Treasuries, German economy and global tariffs

Published 23/04/2025, 12:46
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Investing.com -- Joachim Nagel, a member of the European Central Bank (ECB) Governing Council, expressed concerns over the safe haven status of US Treasuries and the state of the world economy during an interview on Bloomberg TV today. Nagel described the world economy as being in a very delicate situation and stressed the need for a compromise on tariffs.

Nagel also mentioned that it might be possible to achieve price stability over the course of 2025, but emphasized the need for caution. He suggested that conducting policy on a meeting-by-meeting basis would be the best approach.

The ECB official did not rule out the possibility of a recession in Germany this year and painted a picture of stagnation for the Euro area. He also raised the possibility of a German recession in 2025.

Nagel suggested that Chinese products could potentially be redirected to Europe instead of the US. He also commented on Germany’s fiscal package, describing it as an important message to the world. Despite the current economic challenges, Nagel expressed optimism about the future of the German economy, stating it will perform much better in the coming years. He also clarified that the German fiscal package would not lead to inflation.

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