The head of the French central bank, Francois Villeroy de Galhau said the Trump administration is unsettling the multilateral economic system, harming the US economy in the process and to a lesser extent Europe as well.
Villeroy stated this on Wednesday while speaking to lawmakers on the finance commission of the lower house of the French parliament.
“Through his decisions and reversals, Mr. Trump destabilizes the multilateral system. This turnaround increases long-term risks, whether they are financial – think of crypto-assets or non-bank intermediation or climatic,” Villeroy said.
He added that the US Federal Reserve's recent downgrade of its forecast was evidence that the Trump administration's policies were already harming the US economy.
Villeroy reiterated that while the cost in Europe would be lower, an increase of US tariffs in the second quarter would have a limited impact on European inflation and could reduce eurozone economic output by 0.3 percent in a full year.
