ECB’s Villeroy warns that Trump’s trade policies will weaken financial stability & growth

European Central Bank’s Francois Villeroy de Galhau:

• Trump has signed up the whole world to a “lose-lose game” on trade based on flawed economic arguments
• Trump’s attack on trade to dampen economic growth, including for the US, and threaten to undermine financial stability
• Villeroy called for de-escalation to avoid a spiral of rising tariffs
• “It’s more crucial than ever, across the Atlantic, to tell the truth, to fully assess the damage of a trade war, and to open the way for a possible positive dialog”

Bank of France Governor Villeroy was speaking in New York.

***

Earlier Trump reversed some tariff policies, and also on firing Powell:

• Trump said had no intention of firing Fed Chair Powell (he did). Major reversal from Trump

• Trump backing away from tariffs, backing away from firing Powell – will it last?
• Trump says he has no plans to Fire Federal Reserve Chair Powell
• Trump says he is going to be very nice to China, they have to make a deal

This article was written by Eamonn Sheridan at www.forexlive.com.