Piero Cipollone, a member of the European Central Bank’s Executive Board, said there are no current signs of stagflation in the euro area, although inflation remains elevated. Euro-area headline inflation rose to 3.0% in April from 2.6% in March, driven partly by a 10.9% year-on-year increase in energy prices. ECB projections now show inflation at 3.0% in 2026 before easing to 2.3% in 2027, while earlier projections indicated a decline to about 2.8% by June. Cipollone has argued that the current environment differs from the 1970s because long-term inflation expectations remain anchored near 2% and wage-price feedback has not become self-reinforcing. The new comments follow recent ECB policy-rate hikes, although the existing record says the Governing Council left rates unchanged on April 30. Market participants appear to view the ECB’s stance as supportive of holding rates, with prediction-market pricing assigning a 1% probability to a Federal Reserve Pause–Cut–Pause sequence and favoring a Pause–Pause–Pause outcome. Investors will watch upcoming Federal Reserve meetings, statements from Fed Chair Kevin Warsh, U.S. inflation and employment data, and the September FOMC meeting, where new projections and guidance are expected.