ECB’s Stournaras Says US Tariffs Would Negatively Impact Europe’s Economy

By Alexander Weber

November 07, 2024 at 11:23AM EST

Yannis Stournaras, governor of the Bank of Greece, during a European Central Bank rates decision news conference in Athens, Greece, on Thursday, Oct. 26, 2023. The ECB left interest rates unchanged for the first time in more than a year as it gauges whether an unprecedented series of hikes will succeed in subduing inflation. Photographer: Yorgos Karahalis/Bloomberg (Yorgos Karahalis/Bloomberg)

(Bloomberg) -- European Central Bank Governing Council member Yannis Stournaras says an implementation of Donald Trump’s campaign promises on tariffs, fiscal policy and migration would have “certain implications” for the economy.

“It will perhaps increase inflation in the US, at least temporarily. So the Federal Reserve will react to that,” Stournaras tells panel discussion in Athens
“It’ll have a negative impact on the European economy, but also there will be some implications in the exchange rate. All in all, perhaps the European economy will become weaker, at least in the short term. So this has certain implications for our monetary policy”
But “before we see concrete declarations of the new government, of the new president, we cannot change our policy”
- “Our policy continues at least for the next meeting in December”
NOTE: ECB’s Guindos Warns of ‘Huge’ Impact of Trump Tariff Plans

--With assistance from Jana Randow.