French Finance Minister: rising U.S. bond yields show that “era of cost-free money is over”

French Minister for Overall economy, Finance, Market and Digital Protection Bruno Le Maire looks on for the duration of a French president’s stop by to the Eurosatory land and airland defence and stability trade honest, at the Paris-Nord Villepinte Exhibition Centre in Villepinte, north of Paris, June 13, 2022. Ludovic Marin/ Pool by using REUTERS

PARIS, June 14 (Reuters) – French Finance Minister Bruno Le Maire advised France 2 tv on Tuesday that the increase in U.S. bond yields showed that the “period of price tag-no cost income” was around.

Le Maire extra it would price tag France a number of billion euros to pay back back again its financial debt to the sector, which confirmed that value of sticking to a “well balanced and coherent” fiscal policy.

U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear marketplace, as fears develop that the expected intense interest price hikes by the Federal Reserve would push the economy into a economic downturn.

Last week, the European Central Financial institution (ECB) finished a very long-jogging stimulus plan and stated it would deliver subsequent thirty day period its first curiosity fee hike given that 2011, followed by a probably larger sized shift in September. read far more

The ECB, struggling with a euro zone inflation at a history-higher of 8.1% and which is continue to mounting, now fears that selling price progress is broadening out and could morph into a challenging-to-crack wage-value spiral, heralding a new era of stubbornly greater selling prices.

Facts revealed previous month showed the French overall economy unexpectedly shrank in the to start with quarter as individuals struggled to cope with surging inflation that attained a history-high price of 5.8% about 12 months in Could. study much more

Even so, Le Maire has said he expects France to have constructive economic advancement for 2022. study more

Reporting by Tassilo Hummel
Editing by Sudip Kar-Gupta

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