ECB Official Expresses Concerns Over US-EU Trade Deal

Gabriel Makhlouf, a member of the European Central Bank (ECB) Governing Council and Governor of the Central Bank of Ireland, has raised concerns about the potential economic impact of the recent US-EU trade deal. According to Makhlouf, the imposition of 15% tariffs on EU goods by the United States is likely to dampen economic growth.

Impact on Businesses and Consumers

In a detailed blog post, Makhlouf explained that these tariffs could force firms to absorb costs, thereby reducing their profits, or lead to higher prices for US consumers. "Overall, compared to 6 months ago, US tariffs of 15 per cent on EU goods will dampen economic growth," he stated. Despite these challenges, Makhlouf acknowledged that the agreement might help in reducing global economic uncertainty.

ECB's Stance on Inflation and Interest Rates

Additionally, the central banker highlighted that inflation in the Eurozone has stabilized at the ECB's 2% target. He mentioned that the ECB has "reached a point in our easing cycle where we can wait and see whether the data" indicates the necessity for further interest rate cuts.