Core Viewpoint - The European Central Bank (ECB) has successfully achieved its price stability target, but uncertainties regarding the future economic outlook remain despite a trade agreement between the EU and the US [1][3]. Group 1: Economic Outlook - The uncertainty in the economic landscape has decreased by approximately 50% compared to previous conditions, marking a significant improvement [3]. - The ECB has maintained its lending rates steady for the second consecutive meeting, following eight rate cuts of 25 basis points each over the past year [3]. - Officials expect inflation to temporarily dip below the target level next year but stabilize around the 2% target thereafter, with gradual economic momentum anticipated in the coming quarters [3]. Group 2: Policy Stance - As long as the economy does not face major shocks, there is no need for further easing of monetary policy, according to several officials [3]. - However, some officials believe that the possibility of implementing additional policy measures should not be ruled out [3].

Group 1 - President Trump is pushing for the Federal Reserve to cut interest rates quickly, but he cannot significantly influence borrowing costs in the short term due to several reasons [2] - The Federal Reserve Chair only has one vote in the decision-making process, and even if Trump replaces Powell, the new chair must convince the other 11 members of the Federal Open Market Committee (FOMC) to agree on rate cuts [3] - The independence of the Federal Reserve is crucial, and if rate cuts are perceived as politically motivated, it will be difficult for the new chair to gain support from other members [4] Group 2 - Restructuring the Federal Reserve Board is a lengthy process, with board members serving staggered 14-year terms to prevent any one president from overly influencing the Fed [5] - The Federal Reserve cannot directly control most borrowing rates, as it primarily influences short-term interbank lending rates, which do not always correlate with long-term borrowing costs [6] - Long-term interest rates are significantly affected by inflation expectations; if investors believe inflation will rise, they will demand higher long-term rates even if the Fed lowers short-term borrowing costs [8]