In a new interview hosted by Bloomberg’s Balance of Power, BWC Member Christopher Smart discusses the economic risks from the war in the Middle East. According to Smart, the US market is experiencing higher earnings and investment domestically. Smart predicts this will make Kevin Warsh’s first few months in office easier, with the pressure off of him to bring about a Fed rate cut. Smart also discusses the global impact of the closure of the Strait of Hormuz. It will be important to watch how the global balance of supply and demand levels out in the next several months, even if the Strait begins opening again slowly. Smart states we also need to watch how markets continue responding to high oil prices. The world cannot rely on the Gulf for its oil supply, meaning we’re going to have to start looking for other sources quickly.  

To watch the full interview, click here. 

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