Select Language

ECB's Villeroy: Inflation risk from trade tensions seems weak

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. ECB's Villeroy: Inflation risk from trade tensions seems weak

World FX news

search
Breaking news

ECB's Villeroy: Inflation risk from trade tensions seems weak

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.04.18 16:42
ECB's Villeroy: Inflation risk from trade tensions seems weak

update 2025.04.18 16:42

European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Friday that the inflation risk from trade tensions seems weak and could even be downward, per Reuters.

Commenting on US President Donald Trump's criticism of Federal Reserve (Fed) Chairman Jerome Powell, "Fed's Powell is doing his job very well because he is telling the truth as it is," Villeroy said and added that Trump is wrong for criticizing Powell for cutting rates too slowly.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen trading marginally higher on the day at 1.1375.

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.

Date

Created

 : 2025.04.18

Update

Last updated

 : 2025.04.18

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

AUD/JPY trades below 91.00 as Japan's core inflation rises in March

Next article

ECB's Muller: Rates no longer a constraint on economic activity

prev

Most viewed

EUR/JPY Price Forecast: Bullish outlook remains in play near 164.50

The EUR/JPY cross attracts some sellers to around 164.40 during the early European session on Wednesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid the prospects for further policy normalization by the Bank of Japan (BoJ).
New
update2025.05.14 14:40

AUD/JPY trades with modest losses above 95.00, remains close to two-month top set on Tuesday

The AUD/JPY cross attracts some sellers during the Asian session on Wednesday, and for now, it seems to have snapped a two-day winning streak to the 95.65 area, or a nearly two-month high touched the previous day.
New
update2025.05.14 14:24

USD/CHF breaks below 0.8400, downside appears limited due to dovish SNB policy outlook

The USD/CHF pair continues to lose ground for the second consecutive day, trading near 0.8390 during Wednesday's Asian session. Downside risks appear limited, as growing expectations of further monetary easing by the Swiss National Bank (SNB) weaken the Swiss Franc (CHF).
New
update2025.05.14 14:16

China grants first rare earth export permits since adding restrictions last month - Reuters

Citing industry sources familiar with the matter, Reuters reported on Wednesday that China has granted first rare earth export permits since adding restrictions last month.
New
update2025.05.14 14:09

EUR/USD strengthens to near 1.1200 as risk appetite returns

The EUR/USD pair gains ground to around 1.1195 during the Asian trading hours on Wednesday. The US Dollar (USD) weakens against the Euro (EUR) after the cooler-than-expected US April inflation data.
New
update2025.05.14 13:35

India Gold price today: Gold falls, according to FXStreet data

Gold prices fell in India on Wednesday, according to data compiled by FXStreet.
New
update2025.05.14 13:35

FX option expiries for May 14 NY cut

FX option expiries for May 14 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.05.14 13:29

Silver Price Forecast: XAG/USD slides back closer to mid-$31.00s; down nearly 1% for the day

Silver (XAG/USD) extends the previous day's retracement slide from the $33.20-$33.25 resistance zone and attracts some follow-through selling during the Asian session on Wednesday.
New
update2025.05.14 13:20

GBP/USD maintains position above 1.3300 after strong gains, focus turns to key UK, US data

GBP/USD is trading around 1.3300 during Wednesday's Asian session, stabilizing after posting over 1% gains in the previous session.
New
update2025.05.14 13:04

Gold price bears flirt with 200-period EMA pivotal support on H4 amid US-China trade optimism

Gold price (XAU/USD) struggles to capitalize on the previous day's modest uptick and attracts fresh sellers during the Asian session on Wednesday.
New
update2025.05.14 12:52

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel