Economic Uncertainty: The Trump Effect on Global Markets

The Trump administration's economic policies are destabilizing the multilateral system, affecting the U.S. economy and Europe, according to France's central bank head. Francois Villeroy de Galhau highlighted potential financial and climatic risks and indicated the U.S. Federal Reserve's forecast downgrade as evidence of economic harm.

PARIS, March 26 (Reuters) - The head of France's central bank has expressed concern over the Trump administration's disruptive impact on the global economic system, which is adversely affecting both the U.S. and European economies.

Francois Villeroy de Galhau stated that President Trump's unpredictable policies are increasing long-term financial and climatic risks. He referenced areas such as crypto-assets and non-bank intermediation as specific concerns.

Additionally, Villeroy noted that the Federal Reserve's recent forecast downgrade reflects the detrimental effects of U.S. policies, while also suggesting limited impacts on European inflation should U.S. tariffs rise.

(With inputs from agencies.)