Jay Clayton, Senior Policy Advisor and Of Counsel to Sullivan & Cromwell and former Chairman of the Securities and Exchange Commission, appeared on CNBC’s “Squawk Box” to discuss the markets’ response to the Federal Reserve’s latest interest rate increase. Jay pointed out that an important factor is the interconnectedness of global markets such as energy, transportation and food. He says from a governmental perspective, it’s important to shore up supplies in the energy, agricultural and food markets around the G7 nations. Overall, talking about interest rates is not enough, and it’s important for the G7 nations to start stepping up and whether we have a “hard” or “not as hard” landing will depend on these supply factors as much as Fed policy.
Watch the conversation here.