MNI BRIEF: ECB Monitoring Tariffs, Will Be Cautious-Elderson

The European Central Bank is closely monitoring the effects of U.S. tariffs on inflation, Executive Board member Frank Elderson told an MNI Connect livestream, but he added that policymakers will be cautious and are prepared to “look through the fog of the announcement and focus on the facts.”

“From a monetary policy perspective close monitoring is warranted, as is readiness to act quickly if needed,” Elderson said.

“Over the medium-term, tighter U.S. monetary policy tends to be disinflationary for the euro area,” he added. (See MNI SOURCES: ECB Cuts Consensus, But Trump, Fiscal Risks Ahead)