March 12, 2025
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25:28Now PlayingEuropean Central Bank President Christine Lagarde said abrupt shifts in global trade and the region’s defense architecture will make it harder to keep inflation stable. Speaking at a conference in Frankfurt, Lagarde said the changes represent “two-sided shocks” that, along with climate change, complicate policymaking. “Maintaining stability in a new era will be a formidable task,” she said Wednesday. “It will require an absolute commitment to our inflation target, the ability to parse which types of shocks will require a monetary reaction and the agility to react appropriately.”
Officials are confident inflation will return to their 2% target at the start of next year and are lowering interest rates to loosen the shackles on the euro zone’s struggling economy. They’re still gauging the effects of the barrage of tariffs from US President Donald Trump’s administration alongside Europe’s ramp-up in military outlays.
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