Based on Fabio Panetta's comments, the European Central Bank is facing high uncertainty, particularly due to U.S. trade policy decisions. This uncertainty is a key factor in the ECB's caution in lowering interest rates, despite having lowered rates six times since June. Panetta, the governor of the Bank of Italy, emphasized in a speech in Rome that the fight against inflation is not yet complete. He highlighted the need for caution in reducing official rates, especially due to the unpredictable nature of U.S. trade policies. Panetta, known for his dovish monetary policy stance, urged the ECB to adopt a pragmatic and data-driven approach in setting rates. He underscored the importance of closely monitoring all factors that could impede reaching the 2% inflation target. Panetta noted the challenge of balancing the Eurozone's sluggish economy and geopolitical tensions, which hinder consumption and investment, with the need to be cautious in light of increased uncertainty.