European Central Bank (ECB) officials have expressed concerns about the euro's recent appreciation and its potential impact on inflation and monetary policy. ECB Vice President Luis de Guindos stated that while a euro exchange rate up to $1.20 is manageable, any further gains beyond that level would complicate policymaking. ECB Governing Council member Olli Rehn highlighted the risk that inflation might persistently remain below the 2% target, cautioning that a prolonged undershoot could alter euro-zone consumers' price expectations. ECB President Christine Lagarde reaffirmed the bank's commitment to achieving its 2% inflation target and maintaining price stability, emphasizing that the current interest rate stance is appropriate. Additionally, Bank of France Governor Francois Villeroy de Galhau noted that the euro's appreciation has a clear disinflationary effect and warned that sustained strength in the currency could increase the risk of inflation undershooting the target. ECB officials also remain vigilant about rising global trade uncertainties, which add to the economic challenges facing the euro area.