With the war in the Middle East still ongoing, BWC Member Samim Ghamami analyzes the current financial system in an interview with Mark Zandi and Cristian deRitis on the Moody’s Inside Economics podcast. According to him, the main challenge today lies in the imbalances between supply and demand in the Treasury market, driven by the evolution of public debt and the deficit in the United States, which are weakening the market. He also notes that we are moving toward an environment of higher interest rates, which will inevitably increase market volatility. The conversation also addresses the implications of AI, the current state of private credit, and the risks that these could pose to the entire financial system.

To watch the full episode, click here.

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.