How can the trade issue be resolved? The European Central Bank is still prepared to cut interest rates in June to address the economic trauma caused by Trump.

European Central Bank officials are preparing to further cut interest rates, expecting that even if the US President Trump administration softens its stance in the coming weeks, US tariffs will still cause lasting economic damage. After an intensive meeting held by the International Monetary Fund this week, most policymakers left Washington feeling disappointed. They anticipate that Trump's unpredictable behavior will continue to exacerbate uncertainty, suppress spending and investment, and ultimately push inflation higher in the near future. Economists at US Bank, Deutsche Bank, and Morgan Stanley have already projected that deposit rates will be cut to at least 1.5% this year to stimulate demand.