ECB’s Escrivá: US Policies Clearer After April 2, But Uncertainty ‘Still Very High’

9 May 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Friday that US policies seemed clearer after April 2 but that uncertainty remained high.

In remarks at a workshop organised by Banco de España, which he heads, Escrivá said that the ‘outlook for the global economy is clouded by uncertainty, given the policy drive of the US’.

He said this policy included higher tariffs, financial deregulation, energy-related policies, migration, potential decisions on capital control, financial repression of investors in the US and potential exchange rate policies.

Uncertainty was now different to that of the pandemic and it was ‘difficult to measure’, according to Escrivá.

‘Since April 2, clearer US policy drive, but still very high uncertainty’, he added.

Uncertainty was also coming from the financial sector, he said.

There was a ‘potential risk of liquidity restriction due to high dependence on the US for cross-border payments, remittances and the maintenance of international reserves’, he said.

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