Do you think that's due to their more open fiscal policy? Or where do you think are the key parameters where they did different decisions and policies?

Good question.

We should distinguish in economics always between demand and supply.

As to demand, yes, the huge U.S. fiscal deficits, completely unaffordable, unsustainable in the long run, explain a significant part of the U.S. outperformance in terms of actual GDP growth year by year.

But even if we abstract from that, in terms of the structural characteristics, the long-term growth potential, the US is ahead and has been ahead for quite a while.

Why? It's largely a matter of regulation.

In Europe, we are more regulated.

But still, they are talking about it.

Holger, do you see a global disinflation? Is China messed up enough where they export price stability or price decline, which means bond prices up, yields down?

Well, on its own, this is exactly what China is, of course, doing.

It is dumping the results of its industrial overcapacities on global markets.

But there are other forces pointing the other way.

Of course, the US tariffs are not yet fully reflected in US consumer prices.

There is some further upward pressure on US consumer prices to come.

Also, many raw materials are telling a very different story, namely, that global inflation pressures will stay a little elevated or could rise over time.

Chairman Powell get a mulligan, Holger Schmieding?

Holger Schmieding of Berenberg Bank on the Bank of England on the Fed.

I would say it's a good talking point, but dissent on its own is not always good.

It depends on what the arguments are.

How is Germany gonna react to new, a new higher inflation regime?

Well, Germany will probably be part of the higher inflation regime for a simple reason: we have labor shortages coming across most of the advanced world, especially in the US, thanks to, well, net immigration dropping to zero o- over here, and in Europe, demography plays a role.

How is Germany gonna react to a new higher inflation regime?

Well, Germany will probably be part of the higher inflation regime for a simple reason.

We have labor shortages coming across most of the advanced world, especially in the US, thanks to, well, net immigration dropping to zero over here.

And in Europe, demography plays a role.

Labor shortages mean wages in the future, not necessarily this year or next year, but longer run, will rise faster than in the past.

Artificial intelligence helps, but won't fully offset that.

Get used to more wage inflation in the long run and central banks needing to keep rates at a level that's above what we usually had for the last 20 years.

What's your frame out of nominal GDP out two years?

But here is Holger Schmieding of Berenberg on the moment.

Europe will probably want to have the market reaction, the reaction of US consumers registered with the people who meet Donald Trump on the golf course.

Yeah.

Mm-hmm.

It will probably want that, so that the US hopefully will be more eager for a deal.

And in addition, Europe will threaten serious retaliation without hitting the US now, and then hopefully, say within the next two months, by the end of June, we hopefully have negotiated some of this tariff madness away.