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Vice-president of the European Central Bank (ECB) Luis de Guindos, January 30, 2025 in Frankfurt, Germany’s decision news conference.
Alex Kraus / Bloomberg, through Getty Images
On Wednesday, the European Central Bank said that the “fundamental regime change” financial markets can be considered as risky after the trading tariffs of “key regime change”.
At the very recent financial stability, the Central Bank resulted in the latest spike in the market volatility from the global trading voltage managed by the US tariff policy.
Markets, trade and trade from the United States and its trading partners have often reacted to updates sensitive. Shares first puff US President Donald Trump, when I sweeped previously tariffs storm When lawyers announced a temporary 90-day break.
“During Turmoil, the market activity – can be considered in the financial markets in the euro, which can be traded in market activities, as soon as possible,” he said. “It was despite some of the inipulous changes from some traditional safe weather like US treasures and US dollars.”
Although it can be related to technical factors, ECB can be a broader trigger.
“These actions can reflect a more fundamental change in the main regime change, and investors, which causes more shifts in global capital flows,” he said. “This would result in potential remote results for the global financial system.”
ECB Vice President Luis de Guindos suggested that the CNBC is a market risks on Wednesday. The two main things that are currently being taken into account are highly valuation and strong uncertainty, CNBC’s Annette Weisbach told Weisbach.
“Markets are very bad about this scenario. You believe that the growth will be low, but inflation will decrease and monetary policy will be reduced,” he said.
The risks may still be revealed and various topics are unknown as the trade and financial policy and the regulation of the US government.
“And these elements cause variability. I think the variability is, perhaps the result of these two elements, evaluation and uncertainty.”
In the report, the Central Bank noted that this was not created by “this risk”, “this was notified of” this risk of “this risk.”
ECB’s statement that Trump’s interaction tariff announcement was a trigger for this.
Uncertainty ‘The name of the game’
By taking a wider look, Guindos, US trade, financial and regulatory policy was uncertainty, financial markets and the “name of the game” throughout the global economy. The question is now this uncertainty and for European and financial stability for Europe and the action of any policy.
Looking at inflation and economic growth, Guindos, the growth of tariffs will be “harmful” and the impact of prices again reiterated.
In a short time, tariffs will raise the prices of imported goods, as well as demand for the demand that can replace higher costs.
Long-term effects may seem very different.
Tariffs and trade distortions will be harmful to the supply chain of tariffs and trade distortions, and it can increase the value of corporations and it can inflation.
Earlier this week, the European Union cut its latest economic forecasts by cutting 2025 gross domestic products predict 1.1% and 0.9%, respectively for both the EU and the euro area. This is comparable to a previous 1.5% increase for the EU and estimates 1.3% expansion for the euro area.
Title inflation is expected to be expected to be expected to be expected to be expected to fall below the ECB’s target in 2026.
