New Trump Administration Policies and Inflation

(Reuters) – The new Trump administration’s policies may affect inflation in the United States but are unlikely to significantly impact price pressures in Europe, according to ECB policymaker Francois Villeroy de Galhau.

“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 stated during 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 also serves as the governor of the French central bank.