Euro zone inflation looks set to hover around the central bank's target for now. That's the word from ECB leadership, though there's a catch—tariff uncertainty is throwing a wrench into any clear forecasting.

The inflation picture isn't exactly clean. Sure, it's stabilizing near the 2% mark, but trade policy chaos could shift that balance fast. Tariffs mess with supply chains, push up import costs, and create ripple effects across consumer prices. For anyone tracking macro trends, this matters. Central bank policy drives liquidity conditions, which flow straight into risk assets—crypto included.

Right now? The ECB seems cautiously optimistic. But that optimism comes with a giant asterisk. If tariff escalations intensify, inflation could either spike or crater depending on how trade flows adjust. Either scenario forces the ECB's hand on rates, and that changes the game for capital allocation across all markets.