The Financial Post reports in its Friday, May 9, edition that the Bank of Canada warned Thursday that recent market volatility as a result of United States tariffs could lead a sharp repricing in assets, and in extreme circumstances, result in "market dysfunction." The Post's Jordan Gowling writes that BOC Governor Tiff Macklem said: "Now, the Canadian economy and financial system face a new threat. Tariffs and uncertainty have sharply reduced prospects for global economic growth. And financial markets have been rocked by chaotic policy announcements and reversals." The BOC highlighted key risks to Canada's financial system on Thursday in its Financial Stability Report. President Donald Trump's protectionist trade policies roiled global markets last month and tariffs remain a source of uncertainty for the Canadian economy. Market volatility poses short-term risks, but a global trade war could cause severe medium to long-term economic consequences, including slower growth and higher unemployment, leading to some households and businesses struggling with debt payments. Mr. Macklem said, "This could, in turn, have important ramifications for our financial system."