European Central Bank Governing Council: U.S. tariffs dragging down economic growth, further interest rate cuts needed.

European Central Bank committee member Weidmann said that as the eurozone economy has not yet felt the full impact of US tariffs, inflation is expected to continue to slow down. However, he stated that the ECB must further lower interest rates. He mentioned that although economic activity had initially been strong, recent geopolitical trends, including US President Trump's trade threats, are bad news. At the same time, he sees "clear anti-inflationary forces" at work. Weidmann said, "For me, the decision in June is very clear, we need to lower rates again." He also stated, "There is a possibility of further rate cuts after June", although the timing is still unclear. Since June last year, the European Central Bank has already cut interest rates seven times, with officials stating that they are prepared to take more measures as US tariffs threaten economic growth.