Published by Global Banking & Finance Review®
Posted on April 2, 2025
1 min readLast updated: January 24, 2026
ECB's Holzmann warns that a trade war might require unconventional monetary policies, emphasizing central banks' role in financial stability.
BUCHAREST (Reuters) - A potential trade war once U.S. President Donald Trump announces an array of new tariffs may require unconventional policies from central banks, European Central Bank policymaker Robert Holzmann said on Wednesday.
Holzmann, who said the hope was that policymakers would be better equipped to enforce the policies, added central banks cannot be responsible for the whole economy apart from inflation and financial stability.
(Reporting by Luiza Ilie;Editing by Elaine Hardcastle)
The article discusses the potential need for unconventional monetary policies in response to a trade war initiated by new US tariffs.
Robert Holzmann is a policymaker at the European Central Bank who commented on the potential economic impacts of a trade war.
Holzmann states that central banks are responsible for inflation and financial stability but cannot manage the entire economy.
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