S&P 500 falls as ongoing government shutdown, trade jitters weigh
Investing.com -- U.S. protectionism is proving costly for American consumers and the country should work with allies on global financial stability issues instead, French central bank governor Francois Villeroy de Galhau said Tuesday.
Speaking at the Bloomberg Global Regulatory Forum in New York, Villeroy noted that the tariff burden "is already primarily borne by U.S. importing firms and to a lesser extent U.S. consumers, and this will eventually weaken economic activity."
While Europe won’t face inflationary pressures from U.S. protectionist policies, it will bear economic costs from tariffs and America’s reduced global role, according to Villeroy.
The French central banker urged the U.S. to expand international cooperation on monitoring leveraged hedge funds, addressing private credit growth, managing financial asset tokenization, and regulating private stablecoins.
"The rise of private stablecoins, which could reach a market capitalisation of between $500 billion and $2 trillion by 2028, presents two significant challenges: traditional financial actors could be displaced by new technology players ... and it could undermine the current balance between central bank money and commercial bank money," Villeroy said.
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