**ECB Considers Rate Cuts as Eurozone Inflation Declines**

Inflation within the eurozone has decreased to 1.9% in May, down from 2.2% in April, a development that enables the European Central Bank (ECB) to consider further rate cuts. The easing of inflation, driven by lower energy prices, has brought the rate below the ECB’s targeted 2% for the first time since September. This shift occurs amid U.S. President Donald Trump's escalating tariff measures, which are creating concerns about economic growth in Europe.

The reduction in consumer prices signals an end to the inflationary pressures that gripped the eurozone between 2021 and 2023. With inflation seemingly controlled, the ECB can now focus on stimulating the economy, which is facing potential slowdowns due to new U.S. import taxes on European Union goods. These tariffs threaten to dampen Europe's export-dependent economy, further emphasizing the need for supportive monetary policy.

Currently, the ECB’s benchmark interest rate stands at 2.25%. By reducing this rate, borrowing costs across the economy will be lowered, facilitating credit access and encouraging economic activities such as investments. The ECB's rate-setting council, led by President Christine Lagarde, is scheduled to meet on Thursday to discuss the rate adjustments. Analysts predict a reduction of a quarter percentage point, with hints of additional cuts in future meetings.

The economic landscape is further complicated by President Trump's trade policies. Tariffs on steel, aluminum, and autos have been raised to 25%, with the potential to increase to 50% on steel. A proposed 20% tariff on all European Union goods has been paused, pending negotiations and a July 14 deadline. These trade tensions have led the European Union’s executive commission to revise its growth forecast for the eurozone's 20 member countries, reducing the projected growth for this year from 1.3% to 0.9%.

The ECB's upcoming decisions could play a crucial role in counteracting the negative effects of these tariffs and sustaining economic stability within the eurozone.