Economics
ECB's Coeure Warns Trade Wars Raise Burden on Central Banks
- U.S. tariffs have contributed to tighter financial conditions
- Protectionist shocks can boost need for unconventional policy
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European Central Bank Executive Board member Benoit Coeure said the trade spat picked by the U.S. risks increasing the burden on central banks -- as well as hurting the poor -- by dimming global growth prospects.
Protectionist sentiment has already “contributed to tighter financial conditions,” Coeure said on Friday at the Ambrosetti Forum in Cernobbio, Italy. “A ‘trade war’ scenario would add to global uncertainty at a time when some central banks have only just begun the process of unwinding the unconventional policy measures put in place following the global financial crisis.”