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The European Central Bank (ECB) cut its main interest rate to 2.25% due to rising global trade tensions sparked by US tariffs. This is the seventh rate cut in a year, reflecting concerns about slowing economic growth and disruptions to international commerce. The decision contrasts with the US Federal Reserve's decision to hold rates steady. ECB President Christine Lagarde emphasized the importance of central bank independence from government influence, while President Trump criticized Fed Chair Jerome Powell on social media. Experts warn of potential deflationary pressures due to a global glut of manufactured goods.

Prepared by Christopher Adams and reviewed by editorial team.