de Galhau (Wednesday, 2:45 PM)

I don't mean that the latest globalization wave was a fairy tale. It had its problems. It had its imbalances, both social and financial. But the current lose-lose game will obviously increase these problems and in no way solve them.

New trade measures [and] tariffs announced, as well as the increasing unpredictability, which affects confidence, constitute—without any doubt—a major negative shock... to the global economy, but first and foremost to the US economy.

There could even be a US recession, which was unthinkable, unthinkable, three months ago… Bad news for the US is bad news for all, including for Europe.

We can almost say ‘mission accomplished’ when it comes to bringing inflation back to our 2 percent target... It is therefore both fair and appropriate that, compared to the US Fed or the Bank of England, the [European Central Bank] has started cutting rates earlier... faster, and likely further this year.

The least economically harmful option would be indeed to negotiate and then de-escalate the situation, rather than sending off a transatlantic spiral of tariff hikes.

François Villeroy de Galhau Governor of the Banque de France