Global supply shocks signal new era of disorder

The Strait of Hormuz represents the fourth major supply shock this decade, indicating a fundamental shift in the global economic landscape. These recurring disruptions, which the Federal Reserve has attributed to bad luck, are instead symptomatic of a new era of global disorder. This persistent instability poses significant challenges for economic forecasting and policy-making, suggesting that businesses and governments must adapt to a more volatile and unpredictable international environment characterized by frequent supply chain interruptions and geopolitical tensions.