Trump's Policies A Tragedy for American Economy: French Central Bank Governor
The central bankers’ warnings frame Trump’s policies as a paradox: a bid to bolster U.S. strength that may instead weaken it most.
President Donald J. Trump’s administration is battering the U.S. economy more than the global one, France’s central bank governor, François Villeroy de Galhau, declared Thursday, casting the White House’s policies as a self-inflicted wound.
Speaking at a conference hosted by the German embassy in Paris alongside his German counterpart, Villeroy warned that the fallout from Trump’s post-election moves has exceeded expectations.
“It’s a shock for the world economy, but even more so for the American economy,” Villeroy said, framing the disruption as both predictable and unexpectedly severe. “It’s firstly a tragedy for the American economy,” he added, pointing to a policy approach he suggested was backfiring on its own architect.
Joachim Nagel, head of Germany’s Bundesbank, was blunter still. “What is currently happening on the part of the U.S. administration is economic policy from a horror show,” he said, joining Villeroy in a rare public rebuke from two of Europe’s most influential financial voices.
Their remarks come as Trump’s renewed trade wars and domestic maneuvers—marked by steep tariffs and regulatory shifts—rattle markets and stoke uncertainty.
The critique lands amid a trans-Atlantic divide sharpened by Trump’s agenda. While global economies brace for ripple effects, Villeroy and Nagel see a silver lining for Europe.
The turmoil, they argued, offers a chance to jolt the continent’s sluggish growth, luring international capital seeking stability. “Europe can seize this moment,” Villeroy said, pitching the region as a counterweight to America’s chaos.
