Published by Global Banking & Finance Review®
Posted on January 22, 2025
1 min readLast updated: January 27, 2026
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ECB's Villeroy suggests Trump's policies may impact US inflation but not significantly affect euro inflation, as discussed at Davos.
(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.
(Reporting by Leigh Thomas, Editing by dominique Vidalon)
The article discusses the potential impact of Trump's policies on euro inflation, as analyzed by ECB's Villeroy.
Trump's policies may increase inflation in the US due to tariffs and fiscal expansions, but have little effect on Europe.
Francois Villeroy de Galhau is an ECB policymaker and governor of the French central bank.
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