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

French Minister for Economic climate, Finance, Field and Digital Protection Bruno Le Maire looks on through a French president’s go to to the Eurosatory land and airland defence and protection trade good, at the Paris-Nord Villepinte Exhibition Centre in Villepinte, north of Paris, June 13, 2022. Ludovic Marin/ Pool via REUTERS

PARIS, June 14 (Reuters) – French Finance Minister Bruno Le Maire told France 2 tv on Tuesday that the rise in U.S. bond yields showed that the “period of value-cost-free revenue” was in excess of.

Le Maire extra it would price tag France quite a few billion euros to fork out back again its debt to the market place, which showed that importance of sticking to a “balanced and coherent” fiscal coverage.

U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear marketplace, as fears grow that the envisioned aggressive desire price hikes by the Federal Reserve would drive the financial state into a recession.

Final week, the European Central Financial institution (ECB) finished a extensive-operating stimulus scheme and said it would deliver future thirty day period its very first interest amount hike considering that 2011, followed by a potentially much larger shift in September. read more

The ECB, going through a euro zone inflation at a document-high of 8.1% and which is even now mounting, now fears that cost development is broadening out and could morph into a challenging-to-break wage-rate spiral, heralding a new period of stubbornly greater prices.

Information revealed last thirty day period confirmed the French economic system unexpectedly shrank in the to start with quarter as people struggled to cope with surging inflation that achieved a report-superior amount of 5.8% more than 12 months in May well. go through more

Even so, Le Maire has mentioned he expects France to have good economic advancement for 2022. browse much more

Reporting by Tassilo Hummel
Enhancing by Sudip Kar-Gupta

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