U.S.'s Shifting Policies Causing More Uncertainty Than Covid-19, ECB's De Guindos Says — Market Talk

The new administration in Washington is causing a greater deal of economic uncertainty than the global pandemic did at the start of the decade, European Central Bank Vice President Luis de Guindos says. The trade tariffs that President Trump's government plans to place on European goods constitute one source of uncertainty, De Guindos tells British newspaper the Sunday Times in an interview. But the U.S. government's plans to deregulate banks and crypto assets, and to cut corporate taxes, also add to the unclear environment, he says. "In general, what we're seeing is that the new U.S. administration isn't very open to continuing with multilateralism, which is about cooperation across jurisdictions and finding common solutions for common problems," De Guindos says. "This is a very important change, and a big source of uncertainty." ([email protected]; @joshualeokirby)