Lagarde Praises Powell Amidst Tariff Tensions in ECB Meeting

In a recent address, European Central Bank President Christine Lagarde highlighted a strong and stable relationship with U.S. Federal Reserve Chair Jerome Powell, emphasizing the importance of global central bank collaboration. However, discussions regarding tariffs remained inconclusive during the June meeting. The EU responded by offering zero tariffs and redirecting goods flow. Despite potential for a 50 basis point rate cut being mentioned, markets reacted strongly to a 25 basis point reduction.