Bank of Canada Governor Warns Excessive U.S. Investment Poses Global Financial Risk

Bank of Canada Governor Tiff Macklem recently warned that excessive capital flows into the United States are creating broader rollback risks for the global financial system. Speaking in Paris, Macklem stated that large inflows of capital to the U.S. could be misallocated, inflating valuations in stock and credit markets and setting the stage for painful market corrections. He noted that such capital flows may reverse suddenly, with resulting pressures potentially spreading beyond U.S. borders.
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