European Central Bank Governing Council Member Villeroy: Trump's tariffs harm the global economy, and Europe still has room to cut interest rates
European Central Bank Governing Council member and Bank of France Governor François Villeroy de Galhau stated on Monday that U.S. President Donald Trump's tariff threats have created uncertainty for the global economy, but there is still room for further interest rate cuts in Europe as inflation in the eurozone declines. Villeroy said, "We are in a very uncertain moment... Trump's policies have not worked. The policies of the Trump administration are harming the U.S. economy and, unfortunately, also harming the world economy." Villeroy noted that some economists even expect a recession in the U.S., adding, "Protectionism does not work; it means slower growth and increased inflation." Villeroy reiterated that he does not see a risk of recession in France or Europe as inflation continues to decline. He stated, "We still have room for gradual rate cuts." Sources revealed last week that as inflation continues to fall, European Central Bank policymakers are increasingly confident about a rate cut in June, but they have little willingness to take significant rate-cutting actions. Earlier this month, the European Central Bank lowered the benchmark interest rate to 2.25%
According to the Zhitong Finance APP, François Villeroy de Galhau, a member of the European Central Bank and Governor of the Bank of France, stated on Monday that the tariff threats from U.S. President Donald Trump bring uncertainty to the global economy, but with the decline in inflation rates in the Eurozone, there is still room for further interest rate cuts in Europe.
Villeroy said, "We are in a very uncertain moment... Trump's policies have not worked. The policies of the Trump administration are harming the U.S. economy and, unfortunately, also harming the world economy."
Villeroy noted that some economists even expect a recession in the U.S., adding, "Protectionism does not work; it means slower growth and increased inflation."
Villeroy reiterated that as inflation continues to decline, he believes there is no risk of recession in France or Europe.
He stated, "We still have room for gradual interest rate cuts."
Sources revealed last week that as inflation continues to fall, European Central Bank policymakers are increasingly confident about a rate cut in June, but they have little willingness to take significant rate-cutting actions.
Earlier this month, the European Central Bank lowered the benchmark interest rate to 2.25%
