Inflation fears have surpassed US borders. Christine Lagarde, president of the European Central Bank (ECB), warned that abrupt changes in global trade and the defense system of the region will make it more difficult to maintain inflation stability.

Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday: Link to statement on ECB website: Good afternoon, the Vice-President and I welcome you to our press conference.

ECB’s Lagarde warns Trump’s trade war could hit global growth, inflation. She indicates that escalating tariffs risk severe economic consequences, while stressing the ECB’s challenge in stabilising inflation amid record-high uncertainty.

Christine Lagarde (pictured) said it was 'impossible' to guarantee that policymakers would meet a 2% inflation target in the short term.

European Central Bank President Christine Lagarde said on Wednesday that uncertainties surrounding trade policy and geopolitical situations are too high, making it increasingly challenging to maintain economic stability.