- ECB cuts interest rates for the 7th consecutive time, lowering the benchmark rate to 2.40, aiming to address slowing economic growth and persistent inflationary pressures across the Eurozone
- Powell signals no rate cuts in May, emphasizing the Federal Reserve’s cautious stance amid inflationary risks from Trump’s aggressive foreign trade policies and the ongoing economic uncertainty in the United States
- Trump criticizes Powell’s approach, calling him “too late” on rate cuts and demanding his termination, highlighting growing tensions between the President and the Federal Reserve
The European Central Bank (ECB) announced a widely anticipated interest rate cut today, lowering the benchmark rate from 2.65% to 2.40%.
This decision aligns with market forecasts and reflects the ECB’s commitment to addressing slowing economic growth and persistent inflationary pressures across the Eurozone. This is the 7th consecutive interest rate cut in the Euro zone.
Comparisons with the U.S. and Powell’s Cautious Stance
The ECB’s economic policy over the last year shows a stark contrast to Jerome Powell’s more guarded stance. Despite overseeing three consecutive interest cuts last year—Powell’s Federal Reserve is yet to slash rates under the Trump administration.
Currently, the U.S. has a benchmark rate of 4.25—4.50%, and Powell has hinted that maintaining this level remains the most likely course of action in the upcoming Federal Open Market Committee (FOMC) meeting.
In his latest speech on April 16, the Fed Chairman adopted a cautious stance, emphasizing that the Federal Reserve is “well-positioned to wait it out” while assessing the inflationary impacts of Donald Trump’s aggressive foreign trade policies.
These remarks drew sharp criticism from the American President, who attacked Powell in a Truth.Social post, accusing him of being “too late” on rate cuts and calling for his termination.
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