So why is the ECB lowering rates before the FED? It used to be that the FED lead and the rest of the world pretty much followed on it. Now the FED is lagging. Is it because they are scared of a second wave of inflation? Why else wouldn't they lower rates at this point? Assuming the economy is doing well, it wouldn't be a panic cut, it would just be lowering rates because the inflation goal is being achieved, but they aren't in a hurry yet. So what does this signal? It signals that the economy is doing good and lowering rates isn't needed? That's how I read it.
If Trump hadn't got into power then we would probably see the ECB and US Fed lowering interest rates at a similar pace. That is the problem with throwing dynamite around the economy, you leave the central bankers with no choice but to keep their defenses up which means higher rates. Tariffs, which are actually a tax on every American citizen, are driving inflation higher in America which was the root cause of interest rates being so high in the first place. Trump likes to blame all others but has shown nothing but incompetence and the makings of a failed dictator that we have seen many times in history. The fact that the US president, who put the head of the central bank into the position in the first place, is now leaning on what is supposed to be an independent decision making body for the benefit of the US economy is just another sign of his terribly weak leadership.