Fed Is Now Hostage To A War Thousands Of Miles Away

The 9-3 vote, announced by Fed Chair Kevin Warsh, came hours after Iran fired missiles at American forces in the Middle East and oil prices jumped sharply, with Brent crude and West Texas Intermediate both surging in the same session.

The deVere CEO notes the practical consequence is that ordinary borrowers and savers are now exposed to a source of volatility that has nothing to do with the domestic economy.

The conflict has already reshaped how investors think about the rest of the year, with energy prices acting as the link between geopolitical events and household finances.

Nigel Green says today's hold should be read as a pause forced by uncertainty, not a signal that the uncertainty has passed.

The bigger issue perhaps is that households and investors have built financial plans around a level of predictability that simply no longer exists.

Nigel Green says households and investors should treat volatility as the baseline expectation for the months ahead, rather than a temporary disruption.

He concludes:

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