February 07, 2025 09:20 GMT
MNI BRIEF: Most Uncertain Outlook Since Pandemic -de Guindos
MNI (LONDON) - The uncertainty in the global economy is at its highest point since the Covid-19 pandemic hit in 2020 because of the arrival of the new U.S. administration, European Central Bank vice president Luis de Guindos said at an event in Madrid on Friday.
Deregulation in the banking, non-banking and crypto sectors in the U.S. poses financial risks for financial markets, alongside Washington's fiscal policy, noting that markets are increasingly paying attention to the fiscal situation of different countries.
“Fiscal policy is becoming more relevant for markets,” he said, adding that they can react quickly with higher interest rates in the midterm, that in the case of the U.S. could pose a risk to high valuations in other assets.
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