Lagarde: ''Trump 'clearly a threat' to Europe''

According to a report in the Financial Times today, ECB President Christine Lagarde expressed concern over the potential re-election of Donald Trump as US president, stating that it is "clearly a threat" to Europe based on his policies during his first term.

Lagarde broke from the typical stance of central bank leaders avoiding political commentary, highlighting the growing anxiety among European leaders about a Trump victory. She cited areas of potential disagreement, including trade protectionism, military support for NATO, and the fight against climate change.

Lagarde also dismissed rumors of leaving the ECB to rejoin politics and mentioned that the ECB, in its battle against inflation, might consider a future interest rate cut. She noted that the recent surge in inflation was easing, and the ECB was making progress in addressing it.

Additionally, Lagarde commented on the impact of Houthi attacks on shipping in the Red Sea, stating that, for now, the situation seems under control and is unlikely to have a major impact on prices.

[Source: Financial Times]