European Central Bank Governing Council member Patsalides warned that Trump's tariff plan could lead Europe into stagflation

ChainCatcher news, European Central Bank board member Patsalides warned that if U.S. President Donald Trump follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. The Central Bank of Cyprus governor stated in Nicosia on Thursday, "Trade tensions are escalating, and if trade restrictions become a reality, the result could be inflation, economic recession, or worse, stagflation."

He noted that while there is room to continue lowering borrowing costs, it should be done "at a steady pace and magnitude."