Lagarde speech: No US tariff is what I expected

Dhwani Mehta FXStreet

Speaking in a CNBC interview on the sidelines of the World Economic Forum (WEF) annual meetings in Davos on Wednesday, European Central Bank (ECB) President Christine Lagarade said that “no US tariff is what I expected, a smart approach.”

She added that “doesn't mean to say it won't happen, will be more selective.”

Additional quotes

Not surprised by Trump's tariff threats.

Europe must be prepared and anticipate what will happen in order to respond.

We're confident euro zone inflation will be at target over the course of 2025.

We're not overly concerned about export of inflation to Europe.

Exchange rate will be of interest, may have consequences.

If we'll see if early 2025 delivers reduction in services inflation.

We don't see ourselves behind curve.

I'll be attentive to price of energy, haven't anticipated decline in energy prices.

Gradual moves in rates come to mind at moment.

Market reaction

EUR/USD was last seen trading 0.11% lower on the day at 1.0415.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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