Geopolitics is pivoting back to natural resources. Eric Wallerstein, Chief Macro Strategist at Clocktower Group and former Fed/White House advisor, argues nations are realigning around tangible assets - not just trade flows.
The US holds unmatched geoeconomic leverage over China, Iran, and Venezuela. Despite perceptions, 'America First' hasn’t meant global retreat - maritime defense continues, and multilateral engagement persists.
Tariffs? They’re here to stay. Expect 15% baseline rates beyond 2028. The 30-35% hit on China reflects a broader geopolitical calculus - not isolated policy. Isolationist evaluation misses the point.
Progress is evident in rare earth supply chains. Where we stood a year ago versus today? “Two completely different things,” says Wallerstein.
He critiques the Federal Reserve for sidelining foreign exchange impacts in policy directives - even as the dollar’s value will hinge squarely on macroeconomic fundamentals in coming years.
Personal goals now intertwine with economic policy - a shift that’s caught markets and policymakers off guard. Strategy must adapt.