US Labor Day Trading Schedule 2025

Ms Schnabel started her presentation by noting that financial markets had reverted to a low-volatility, “risk-on” regime, leaving the turbulence of April 2025 behind despite further tariff-related headlines. Market volatility had receded after the short-lived spike due to tensions in the Middle East, with tariff announcements by the US Administration having recently lost traction as drivers of asset price dynamics and risk assets having rallied globally since the Governing Council’s last monetary policy meeting on 4-5 June. Meanwhile, the euro area economy appeared to be more resilient to rising tariffs and elevated trade uncertainty than anticipated. Despite a further appreciation of the euro, driven to a large extent by the reassessment of relative economic activity between the euro area and the United States, market-based inflation compensation had edged up further and the ECB forward interest rate curve had shifted higher. ECB ACCOUNTS: INTEREST RATES WERE IN BROADLY NEUTRAL TERRITORY ENVIRONMENT REMAINED EXCEPTIONALLY UNCERTAIN MOST MEMBERS VIEWED THE RISKS SURROUNDING THE INFLATION OUTLOOK AS BROADLY BALANCED MAINTAINING POLICY RATES AT THEIR CURRENT LEVELS WOULD ALLOW MORE TIME TO SEE…