Overview

• In his July Mansion House speech, Bailey warned that rising US tariffs risk fragmenting the global economy and curbing growth.
• He urged Washington to justify its large current account deficit and challenged Beijing to strengthen domestic consumption before resorting to trade restrictions.
• Bailey called for the IMF’s warnings on excess imbalances to carry greater prominence in headline economic assessments and for deeper WTO trade analysis.
• As incoming chair of the Financial Stability Board, he outlined plans with the IMF to run resilience tests on banks, hedge funds and other systemically important institutions.
• His proposals follow the expiry of the 90-day pause on President Trump’s ‘liberation day’ tariffs and EU threats of retaliatory duties that have rattled markets.