US inflationary pressure a risk to markets in 2025

DAVOS, Switzerland, Jan 23 (Reuters): The chief executive of Norway's $1.8 trillion sovereign wealth fund, one of the world's largest investors, said on Thursday that inflationary pressure in the United States posed a risk to financial markets this year. Asked what were the biggest risks to markets in 2025, Nicolai Tangen said: "Inflationary pressure from what's going on in the US now."

Another risk was sovereign debt levels globally, he added.

It is "whether you get to a point where investors think that government debt is generally too high across the world and they want a much higher coupon to finance governments," he said during a Reuters NEXT Newsmaker interview at the World Economic Forum in Davos.

The fund holds stakes in close to 9,000 companies in more than 70 countries, representing 1.5 per cent of the world's listed equities and giving it an influential voice in global finance.