Thanks Ody
odysseus2000 wrote:Many of the ideas and beliefs of central banks have assumed no change in global trade. Trump's use of Tariffs was, imho, not considered likely or effective and now that it has been done and had significant effects, the central banks are trying to formulate a response.
Powell at the US Fed was keen to raise rates for no obvious reason other than they used to be higher, but he has had to pause as tariffs are doing what rate rises would have done and perhaps more so that he is now apparently thinking of cutting rates.
Sounds like a play into DJTs hands - isn't he always banging on about wanting low fed rates?
German industry doesn't like a strong Euro making their products more expensive and so perhaps the ECB is reacting to pressure from Merkel whereas Trump sees such moves as going against his trade policy and undermining US industry.
I get it. Print more euros and make hence em cheaper.
In the sense that the ECB is trying to manage a currency for the weak Greek economy to the huge powerful German economy one can argue that being out of the Euro and out of the constraints of the EU is a blessing, but many others argue the reverse with very polarised, near religious convictions on both sides.
But perhaps I jumped the gun in my OP. Since were we still *remain* to in the EU, but keep the £, perhaps it's irrelevant what the ECB does?