Headlines
ECB's Schnabel sees no lasting decoupling from Fed
Published by Global Banking & Finance Review®
Posted on June 7, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 7, 2025
1 min readLast updated: January 23, 2026
ECB's Schnabel expects ECB and Fed policies to remain aligned due to global trade tensions impacting demand and supply.
DUBROVNIK, Croatia (Reuters) -Ongoing trade tensions between the United States and the rest of the world are a shock to the entire global economy, meaning the Federal Reserve's and the European Central Bank's monetary policies are unlikely to diverge for long, ECB board member Isabel Schnabel said on Saturday.
"I expect this trade conflict to play out as a global shock that's working through both lower demand and supply," she told a conference in Croatia.
"We can discuss which of the two effects on inflation is larger because that determines the net effect. But in any case, I would not expect a sustained decoupling (between the ECB and the Fed)," she said.
(Reporting By Francesco CanepaEditing by Tomasz Janowski)
Schnabel expects the trade conflict to act as a global shock affecting both demand and supply.
Schnabel does not expect a sustained decoupling between the ECB and the Fed, despite the ongoing trade tensions.
The trade conflict could influence inflation through its effects on demand and supply, with discussions on which effect is larger.
Explore more articles in the Headlines category
