Lazard CEO Peter Orszag said the global economy is currently in a \u201cRoad Runner moment\u201d where the impact of the Middle East conflict on prices is yet to manifest.<\/p>\n
Speaking at Semafor World Economy in Washington, DC, on Monday, Orszag referenced the famous scenes of the American cartoon character Wile E. Coyote stepping off a cliff without realizing that gravity is about to kick in. <\/p>\n
Because of the combination of the ships that were already through the Strait of Hormuz before the war began, and existing inventories making up for the drop in shipments, \u201cthe impact of what\u2019s happening is not yet manifest itself in most economies,\u201d he said. <\/p>\n
\u201cSupply shocks take a very long time to feed through into prices. That was true for COVID. It\u2019s true with regard to tariffs. It will be true with regard to the Middle East.\u201d<\/p>\n
If the conflict continues and inventories start running low, the world economy will start to see more pressure on jet fuel, aluminum, helium, fertilizer and other raw materials contained in thousands of products, he said.<\/p>\n
Orszag also said that US inflation will likely remain at about 3% to 3.5%,
suggesting it won\u2019t be high enough for the majority of the US Federal Reserve governors to agree to cut interest rates. If rates are lowered under that scenario, \u201call that would happen is the yield curve would steepen.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"Lazard CEO Peter Orszag said the global economy is currently in a \u201cRoad Runner moment\u201d where the impact…\n","protected":false},"author":2,"featured_media":582778,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":{"0":"post-582777","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/582777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=582777"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/582777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/582778"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=582777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=582777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=582777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}