Investing.com — The policies of the new Trump administration may lead to changes in inflation in the United States, but are not likely to significantly affect price pressures in Europe, according to Francois Villeroy de Galhau, a policymaker for the European Central Bank (ECB).
Villeroy cautiously suggested that the U.S. could see inflationary effects due to tariffs and fiscal expansions under the Trump administration. He shared his thoughts during a panel at the Davos economic forum on Wednesday.
Villeroy, who holds the additional role of governor of the French central bank, expressed his belief that the impact on Europe’s inflation would not be significant. He anticipates that the ongoing disinflation process in Europe will continue.
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