Nicolai Tangen, chief executive officer of Norges Bank Investment Management, during a news conference in Oslo, Norway, on Tuesday, Jan. 30, 2024. Norway’s $1.6 trillion wealth fund added to its bets in the biggest technology companies last year after interest in artificial intelligence drove a surge in the sector.
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Inflation driven by tariffs is among the biggest market risks in 2025, Nicolai Tangen, head of the world’s biggest sovereign wealth fund, said Tuesday.
“I don’t think I should give any advice to the U.S., but if you look at the risk to financial markets, I think inflation is for sure one, all driven by tariffs,” the CEO of Norges Bank Investment Management told CNBC at the World Economic Forum in Davos.
“Many of the suggestions now coming out of the U.S. are potentially inflationary. They could cause more inflation. There could be less labor supply, there could be more tariffs — all of these things are driving inflation, and so it’s not a given that inflation will come down,” he said.
Tangen also flagged additional chief risks that include higher for longer interest rates, high levels of government debt and geopolitical tensions. As his top risk, he cited concentration in U.S. equities among large cap tech firms, which he said had “never been bigger.”
This is a breaking news story and will be updated shortly.