US Tariff Decision Sparks Mixed Reactions

Francois Villeroy de Galhau, a prominent member of the European Central Bank (ECB) Governing Council and Governor of the Bank of France, has labeled the US's recent decision to halt tariff increases for 90 days as a "less bad" scenario. Describing it as the "start of economic reason," Villeroy shared his insights on France Inter, highlighting the move's significance yet cautioning against overoptimism.

Underlying Challenges Remain

Villeroy pointed out two major concerns with Washington's economic approach: unpredictability and protectionism. He argued that these factors not only threaten US growth and confidence but also disproportionately affect American consumers through higher prices, compared to their impact on Europe.

France's Economic Outlook

Despite acknowledging a slowdown in France, Villeroy reassured that there are no signs of an impending recession. He emphasized the importance of not overreacting to the country's deficit figures, especially in the context of ongoing global transformations.