Latest news with #pre-Russia
Yahoo
5 days ago
- Business
- Yahoo
Europe cuts interest rates again, day after Trump renews attacks on the Fed
The European Central Bank on Thursday cut its main interest rate again, citing slowing price rises. The widely anticipated move takes the ECB's main rate to 2%, from 2.25% previously, and marks the eighth time the central bank has slashed borrowing costs since last June as inflation has tumbled from multi-decade highs. Year-on-year consumer price inflation across the 20 countries using the euro dropped to 1.9% last month — falling below the ECB's 2% target for the first time since September. The decision risks provoking further attacks by President Donald Trump on the Federal Reserve for not following suit and lowering borrowing costs in the United States. The Fed has kept interest rates steady in recent months, opting to wait and see how the president's trade war will impact the world's largest economy before deciding whether to cut or raise rates. Trump has used the ECB's recent rate cuts as a cudgel with which to pressure Fed Chair Jerome Powell. ''Too Late' Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!' Trump wrote in a social media post Wednesday in anticipation of the ECB's decision. (Fact check: The ECB had by that point cut its main rate seven times since it started lowering borrowing costs in June 2024). Hussain Mehdi, an investment strategist at HSBC Asset Management, said the ECB is in 'an enviable position.' 'Underlying inflation is back at pre-Russia/Ukraine (war) levels,' he said Thursday, adding that inflation in Europe was likely to continue slowing due to a stronger euro and lower oil and gas prices. 'Tariffs may also help keep prices in check, given they weigh on demand.' Central bankers tend to lower the cost of borrowing when they feel the economy needs juicing. And Trump's trade war risks sapping economic gro wth in Europe, America and the rest of the world. ECB President Christine Lagarde told reporters Thursday that 'a further escalation in global trade tensions and associated uncertainties could lower euro area growth by dampening exports and dragging down investment and consumption.' The European Union has been working to strike a trade agreement with the US, conscious in particular of Trump's recent threat to slap a 50% tariff on goods arriving from the bloc. Maroš Šefčovič, the EU's top trade representative, told reporters Wednesday that negotiations with his US counterpart, Jamieson Greer, were progressing 'at pace' and 'in the right direction.' Similarly, Greer said the talks were 'advancing quickly.' Underscoring the importance of these talks, Felix Schmidt, senior economist at bank Berenberg, said Monday that 'uncertainty is holding back the eurozone economy more than the stance of monetary policy.' 'If this uncertainty diminishes in the wake of a deal between the US and the EU, as we expect, growth should rebound,' he wrote in a note.
USA Today
16-02-2025
- Politics
- USA Today
Zelenskyy says US support is 'critical' for Ukraine' survival, calls Putin 'scared' of Trump
Zelenskyy says US support is 'critical' for Ukraine' survival, calls Putin 'scared' of Trump Show Caption Hide Caption President Trump criticizes Zelenskyy on Ukraine war in Fox interview President Donald Trump said Volodymyr Zelenskyy should never have entered a war with Russia in a chat about foreign policy with Sean Hannity. Ukrainian President Volodymyr Zelenskyy said he believes his country has a "low chance" of surviving its bloody war with Russia without continued American support. "I think it's very important, critical," Zelenskyy told NBC's Kristen Welker in an interview that aired Sunday. "I don't want to think that we will not be strategic partners. I don't want to think about it because it will make a pressure on morality of Ukrainians" Last week, President Donald Trump and Russian President Vladimir Putin spoke on the phone, having a "lengthy and fruitful" discussion, Trump said. The world leaders reportedly agreed to begin talks of ending the war between Russia and Ukraine, which exploded over 2 years ago after Russia invaded its neighbor. 'Unrealistic': Pete Hegseth on a return to Ukraine's pre-Russia invasion borders, joining NATO Trump last week also floated the prospect of a future meeting with Putin in Saudi Arabia to discuss ending the war in the region, though an exact date has not been set. Zelenskyy has not received an invitation to the talks, he told NBC. "I will never accept any decisions between the United States and Russia about Ukraine. Never," he said. "The war in Ukraine is against us, and it is our human losses. And we are thankful for all the support..." "But," Zelenskyy added, "there is no any leader in the world who can really make a deal with Putin without us about us." The United Nations last month said the conflict has killed more than 12,300 civilians since February 2022, including more than 650 children. Trump, less than a month into his second term, has largely flipped the script when it comes to U.S. dealings with Russia. Where former President Joe Biden referred to Putin as a "pure thug" and "brutal tyrant," Trump has shown a willingness to engage with, and potentially negotiate with, the longtime Russian leader. During the 2024 presidential election, Trump also repeatedly criticized ongoing U.S. support for Ukraine. More: Team Trump shakes Europe with Ukraine shift and NATO demands Zelenskyy cautioned against trusting his wartime adversary, though, telling NBC he does not believe Putin is capable of negotiating in good faith. In a phone call with Trump last week, the Ukranian president said he warned his U.S. counterpart that Putin is "a liar." "But I think he's really a little bit scared about the President Trump," Zelenskyy said of Putin. "And I think the president has this chance, and he's strong. And I think that really he can push Putin to peace negotiations ... But don't trust him. Don't trust Putin." Contributing: Kim Hjelmgaard and Cybele Mayes-Osterman, USA TODAY
