ECB Official Views US Tariff Decision as a Positive Shift

Francois Villeroy de Galhau, a key figure in the European Central Bank (ECB) Governing Council and Governor of the Bank of France, has cautiously welcomed the United States' decision to halt tariff increases for 90 days. Describing the move as "a start of economic reason," Villeroy emphasized its significance in a recent interview on France Inter, though he stopped short of calling it outright good news.

Challenges Remain in US Economic Strategy

Villeroy pointed out two major concerns with Washington's approach: unpredictability and protectionism. He argued that these elements not only undermine confidence and growth in the US but also have a disproportionate impact on American consumers and the economy compared to Europe.

France's Economic Outlook

Despite acknowledging a slowdown in France, Villeroy reassured that there are no indicators of a looming recession. He also advised against overreacting to the country's deficit figures, highlighting the importance of considering the broader context of global economic shifts.