Trump's Economic Plans: Inflation Risks Or Global Growth Obstacle?

Francois Villeroy de Galhau, head of the Bank of France and ECB member, warns that President-elect Donald Trump's economic plans could spur inflation in the U.S. and hinder global economic growth. Trump's proposed tariffs might lead to reduced purchasing power for U.S. consumers.

The incoming administration of U.S. President-elect Donald Trump poses an economic conundrum that could potentially revive inflation within the United States while impacting global growth, according to a key financial leader.

François Villeroy de Galhau, head of the Bank of France and a member of the European Central Bank, expressed this concern while speaking on France Inter radio. Villeroy cautioned that Trump's economic program risks inflating prices in the U.S. and slightly dampening international growth.

The proposed tariffs of 10% or more on imported goods might eliminate the U.S. trade deficit, but Villeroy notes that American consumers could face weakened purchasing power due to protectionist measures.

(With inputs from agencies.)