European Central Bank president Christine Lagarde said in a CNBC interview on Tuesday that the ECB's monetary policy will remain data-dependent.
The official added that she is sure there is scope for negotiations with U.S. President Donald Trump on tariffs, noting that European trade with the U.S. is 17%. Furthermore, she pointed out that the U.S. has a trade surplus in the EU with services.
Lagarde also acknowledged that downside risk on growth is pretty much a given, and not just in Europe. She stated that the net impact of tariffs is yet to be seen, but reassured that they do not see a recession in the Eurozone.
Finally, the ECB's boss expressed her hopes that the prospect of U.S. President Donald Trump firing Federal Reserve chair Jerome Powell is not on the table, declining to comment on the market implications of such an event.