ECB’s Villeroy: Our Decisions Are Independent of the Fed’s

23 November 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Saturday that the decisions taken by the ECB are independent of those of the Fed.

In an interview with French daily Ouest-France, Villeroy, who heads the Banque de France, said, ‘The proof [of ECB independence] is that we started cutting interest rates at the beginning of June and the Fed didn't cut them until three months later.’

If inflation were to continue declining, the ECB would be able to cut rates further, the said.

Asked about the impact of the US presidential election on the European economy, Villeroy said that it ‘probably increases the risks for the global economy, and the need for a European awakening.’

The new Donald Trump presidency could bring higher inflation in the US and lower growth globally, he said.

‘The increased budget deficit programme is also likely to raise long-term interest rates’, he added.