European Central Bank (ECB) Vice President Luis de Guindos stated on Sunday that the uncertainty surrounding US President Donald Trump’s policies surpasses that of the COVID-19 pandemic. Speaking to Bloomberg, de Guindos emphasized that the new US administration’s shift away from multilateralism is a key source of economic unpredictability.
Key Quotes from De Guindos:
“We need to consider the uncertainty of the current environment, which is even higher than it was during the pandemic.”
“What we’re seeing is that the new US administration isn’t very open to continuing with multilateralism, which is about cooperation across jurisdictions and finding common solutions for common problems. This is a very important change, and a big source of uncertainty.”
Market Reaction
Following de Guindos’ remarks, the EUR/USD pair saw a modest uptick, rising 0.05% to 1.0883 at the time of reporting. Investors are closely watching for further developments in US economic policy and its impact on global markets.
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