Norges Investment Bank CEO concerned about rising US debt levels, potential interest rate hikes

The CEO of the world’s largest sovereign wealth fund, Norges Investment Bank, expressed concern over the US’s growing debt levels, noting a global debt of around $100 trillion. The Trump administration’s recent bill is expected to add $3.3 trillion to the national debt over the next decade. Tangen warns of potential interest rate hikes if debt levels continue to rise.

Established in 1969, Norges Bank’s Global Pension Fund manages over $2.8 trillion in assets, investing solely abroad and owning stakes in 9,000 global companies. Tangen, who has helmed Norges Bank since 2020, hosts a podcast and recently renewed his CEO contract for five more years. The fund remains bullish on tech, holding large-cap positions in companies like Microsoft and Tesla.

Tangen emphasizes the importance of monitoring debt levels, especially in the US, where he sees a risk of investors demanding higher interest rates due to escalating debt. The fund, created to mitigate the impact of oil wealth on Norway’s economy, focuses on international investments and real estate holdings. With investments in key tech companies, Tangen notes a higher concentration in the fund’s portfolio than in the past.

Read more at Yahoo Finance: Why the CEO of the world’s large sovereign wealth fund is worried about rising US debt