Speaking to CNBC-TV18 in an exclusive interview, Trichet blamed the Trump administration for partly fuelling US inflation through their tariff measures. He said US tariffs have a negative impact on inflation and are “a big negative for the global economy.”
US consumer prices for a wide range of goods and services rose more than expected in August, while jobless claims accelerated during the month, presenting new challenges for the Federal Reserve.
Trichet said, “Pres Trump might change his opinion based on how markets perform,” referring specifically to the US tariff measures that have unsettled global trade and markets.
Highlighting market behavior, the former ECB Chief said that gold prices are reflective of the uncertainty in present global situation.
This year, gold has again reached all-time highs, driven by global economic uncertainty, safe-haven demand, and expectations of further US monetary easing.
Despite global headwinds, Trichet expressed confidence in India’s resilience. He cited the country’s strong human resources, robust technology sector, and capacity for innovation, which could help it withstand external shocks. However, he emphasised that central banks worldwide, including the Reserve Bank of India, face significant challenges in managing inflation, maintaining financial stability, and navigating a complex geopolitical environment.
Also Read: India’s 8% growth ambition achievable but needs bold reforms: Jean-Claude Trichet
First Published: Oct 3, 2025 7:49 PM IST
