PARIS (Reuters)

U.S. Federal Reserve Chair Jerome Powell is portrayed as an exemplary central banker by European Central Bank (ECB) policymaker Francois Villeroy de Galhau. Villeroy praised Powell for candidly communicating the realities of the U.S. economy without yielding to political pressures.

U.S. President Donald Trump has criticized Powell, claiming he is politicizing decisions by not lowering interest rates, expressing a wish for Powell’s departure.

Powell has indicated that interest rate cuts are unlikely soon and warned that Trump’s tariff proposals could increase both inflation and unemployment.

On the French website Boursorama, Villeroy lauded Powell’s professionalism and courage, emphasizing that a central banker must speak truthfully and independently.

Villeroy disagreed with Trump’s criticism regarding interest rates, highlighting that the ECB has successfully reduced rates in the euro zone amid a decline in inflation towards its 2% goal. Recently, the ECB cut interest rates for the seventh time within a year and indicated that U.S. tariffs may pose risks to economic growth, prompting expectations of further easing.

Villeroy indicated uncertainty about upcoming ECB rate decisions, stating various options remain available for the next meeting in June.