The world faces a global recession if the Strait of Hormuz remains closed for the remainder of this year, Citadel CEO Ken Griffin said Tuesday.<\/p>\n
\u201cLet\u2019s assume it\u2019s shut down for the next six to 12 months,\u201d Griffin said at Semafor World Economy in Washington, DC. \u201cThe world\u2019s going to end up in a recession. There\u2019s no way to avoid that.\u201d<\/p>\n
Countries would also make a rapid shift toward the use of renewable energy sources, such as nuclear and wind power, Griffin said, coupled with efforts to reduce dependence on fossil fuels. He said that the risk of recession had already increased due to the classic energy shock that is now unfolding.<\/p>\n
The increased risk of recession would not only destroy demand for goods and services but also force central bankers to make some very difficult decisions, he added. Chief among them: whether an inflationary spike would be transitory, leaving monetary policy as it is; or a scenario where rates would have to be raised to keep inflation expectations anchored.<\/p>\n
\u201cThis really is a very, very treacherous moment for the world economy as we navigate the consequences of trying to secure a lasting peace in the Middle East,\u201d Griffin said.<\/p>\n
Responding to a question about the impact of the Trump administration\u2019s foreign policy approach on the American brand, Griffin said there were \u201cboth good and bad\u201d impacts. The government pulled off the ouster of Venezuela\u2019s leader with \u201cincredible grace,\u201d he said, but that it created \u201cundue confidence\u201d about implementing regime change in Iran. <\/p>\n
\u201cWe did a very poor job of messaging to the world\u201d over the US campaign in Iran, Griffin said. \u201cThe moral imperative for what has happened in Iran over the course of the last 50 days \u2026 we did not position this issue with the world through the right talking points, and nor did we bring our allies on board with us. And I think that was a mistake.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The world faces a global recession if the Strait of Hormuz remains closed for the remainder of this…\n","protected":false},"author":2,"featured_media":398466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":{"0":"post-398465","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-ie","11":"tag-ireland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/398465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=398465"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/398465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/398466"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=398465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=398465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=398465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}