Four more rate cuts is a meaningful scenario that I feel relatively comfortable with

European Central Bank (ECB) policymaker Pierre Wunsch said on Wednesday that “four more rate cuts is a meaningful scenario that I feel relatively comfortable with.”

Additional quotes

Impact of tariffs depends on reaction in the exchange rate.

A larger euro depreciation would cushion the impact of tariffs on growth.

But it would make a larger impact on inflation.

If Euro touches parity against the dollar, we wouldn’t lose as much in terms of competitiveness.

I guess we’ll land with rates somewhere around 2%.

Four more rate cuts is a meaningful scenario that I feel relatively comfortable with.

There is no appetite to change inflation target.

Market reaction

As of writing, EUR/USD is defending bets at around 1.0500, awaiting the Fed decision for a fresh direction.