Inflation Dynamics in Europe and the U.S.

This chapter examines the significant decline of inflation in Europe, projecting an average of 2.1% for the year, while analyzing potential inflationary effects in the U.S. due to fiscal policies and tariffs. It further discusses the decoupling of monetary policies between the European Central Bank and the Federal Reserve and the influence of long-term interest rates on economic growth. Key factors such as political decisions, trade policies, and the anticipation of interest rate cuts by the ECB are highlighted as critical components of the current economic landscape.