Andrew Bailey, the Governor of the Bank of England, voiced his concerns regarding the proposed tariff increases put forth by US President Donald Trump and their potential repercussions on the global economy.
Criticism of Trump's Tariff Policy
Bailey condemned Trump's proposed 30% tariffs on imports from the EU and Mexico, describing them as "economic sabotage." He argued that such measures could exacerbate inflation and destabilize the global economy.
Call for International Cooperation
Bailey urged for renewed international cooperation between the US and China to address trade and capital flow imbalances, noting that economic conflicts exacerbate political tensions.
Risks of Digital Currencies and Stablecoins
The Bank of England warned that the widespread use of digital currencies could heighten the risk of bank runs. Bailey expressed doubts about the viability of stablecoins in the future.
In his speech, Bailey emphasized the importance of cooperation and the need for reforming international financial institutions to enhance global economic stability.
