Bank of Greece Governor warns Trump’s election could impact European Economy if campaign p
Source: NEOS KOSMOS
The recent U.S. presidential election may pose economic challenges for both the American and European markets if campaign promises are fulfilled, according to Yannis Stournaras, Governor of the Bank of Greece and European Central Bank (ECB) board member.
Speaking at a conference on public debt, Stournaras refrained from offering a definitive stance on the new administration until formal policies are announced.
However, he noted that, “from an academic standpoint” and based on President-elect Donald Trump’s campaign pledges, certain impacts can be anticipated.
“Trump’s rhetoric during the campaign included pledges on immigration reform and higher tariffs,” Stournaras stated.
“Should these measures be enacted, the U.S. could see a temporary rise in inflation and an increase in public debt, which may prompt a response from the Federal Reserve.”
For Europe, the Bank of Greece governor suggested potential adverse effects, noting that the euro exchange rate and economic growth may feel the impact, potentially influencing the ECB’s approach to monetary policy. Stournaras clarified, however, that the ECB’s policy direction would remain steady at least until the next board meeting in December.
“Our monetary policy remains unchanged until the new president clarifies his economic agenda. Currently, inflation is decreasing and progressing better than September’s forecasts, while recent Eurostat data indicates a further slowdown in the European economy,” he added.
“Monetary policy decisions will continue to rely on incoming data at our December meeting.”
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