more to come European Central Bank Governing Council member and head of Germany’s Bundesbank Joachim Nagel
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said there has been progress in resolving the U.S.-EU tariff dispute, but more hurdles remain.
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Speaking from the G7 meeting in Banff, Canada, Nagel noted a better mutual understanding is developing between the U.S. and Europe.
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He stressed that both sides now recognize trade conflicts have no winners.
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Nagel is “a little more confident” than he was days earlier, suggesting improved dialogue with the U.S.
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The German Council of Economic Experts cut its growth forecast for Germany, citing the negative impact of tariff uncertainty.
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Nagel expects German Q1 growth might surprise on the upside, but warns of deterioration in Q2 as tariff effects bite.
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He sees potential for German growth to return to 1% or more by 2026, depending on the speed of fiscal policy rollout.
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In a separate interview, Nagel described U.S. Treasury Secretary Scott Bessent as “constructive.”
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He rejected any notion of a G7 split over U.S. policy, affirming: “It’s a G7.”
This article was written by Eamonn Sheridan at www.forexlive.com.
