Mark Carney, "The lessons of Brexit are beginning to be applied to the United States"
— Farrukh (@implausibleblog) April 29, 2025
"When you break off or substantially rupture trade relationships with your major trading partners, Canada included – the most important trading partner of the United States"
"You end up with… pic.twitter.com/xaR8VoubBn
“The lessons of Brexit are beginning to be applied to the United States … When you break off or substantially rupture trade relationships with your major trading partners, Canada included – the most important trading partner of the United States … You end up with slower growth, higher inflation, higher interest rates, volatility, weaker currency, a weaker economy. We’re seeing the early stages of that in the United States”
As a reminder, Carney is formerly the head of Canada’s central bank and was the first foreigner in history to be tapped as the head of the Bank of England. It was the aftermath of the Brexit debacle and they needed an expert.
As head of Britain’s central bank, Carney ran the country’s monetary policy. In this he was independent of the government, though the Bank is required to support the government’s economic policy.
Carney’s tenure on Threadneedle Street, from 2013 to 2020, coincided with the full drama of Brexit – from the vote to leave the EU in 2016 to Britain’s departure in 2020.
His dire warnings about the financial risks won him the admiration of Remainers and the distrust of Brexiteers, who accused him of exceeding his apolitical remit. Influential Conservatives, including Margaret Thatcher’s former finance chief, Nigel Lawson, called for his resignation.
His predecessor at the Bank, Mervyn King, was far more upbeat about Brexit. The pair clashed – albeit indirectly and politely, each without naming the other – over Carney’s involvement in what King saw as fearmongering, and over King’s reluctance to bail out failing banks during the 2007 financial crisis.
In January 2016, five-and-a-half months before the referendum, Carney called the prospect of Britain voting to leave the “biggest domestic risk to financial stability.”
He also praised a now-forgotten “deal” that the then-Prime Minister, David Cameron, had struck with Brussels, intended to give Britain more wiggle-room as a full member of the EU. Carney said the agreement would “reinforce the positive impact of EU membership.”
His interventions prompted accusations from Brexiteers that Carney was “pro-EU,” which he denied.
One might say he had to deny it: Bank of England governors are meant to stay out of politics. One could also argue that Carney was calling the financial risks as he saw them, which was his job.
This is probably just bullshit but it’s intriguing.