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ECB’s Villeroy: Trump policies unlikely to have much impact on euro inflation

by January 22, 2025
written by January 22, 2025

(Reuters) – The new Trump administration’s policies may affect inflation in the United States but are unlikely to have much impact on price pressures in Europe, ECB policymaker Francois Villeroy de Galhau said on Wednesday.

“We could expect, but I say it very cautiously, this programme to have inflationary effects in the U.S. due to tariffs, fiscal expansions,” Villeroy told a panel at the Davos economic forum.

“On the European side I don’t think that the inflationary effects will be that significant, so I would expect this disinflation process to go on,” added Villeroy, who is also governor of the French central bank.

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