This Week in Review | Middle East Update, New Fed Chair Hearing, Resilient Markets (Apr. 24, 2026)
This Week in Review covers Trump's indefinite extension of the Iran ceasefire, Kevin Warsh's Fed chair confirmation hearing following the DOJ investigation closure, and market resilience despite a 9% pullback from Middle East volatility. Markets have reached new highs despite ongoing uncertainties, demonstrating their forward-looking nature and ability to price in known information quickly.
Summary
The episode begins with Middle East developments, where President Trump extended the two-week Iran ceasefire indefinitely beyond its Wednesday deadline, with Pakistan and other countries facilitating restart talks. Despite the ongoing closure of the Strait of Hormuz and US blockade of Iranian ports, markets have largely moved on from pricing in the conflict. The hosts emphasize that broader economic conditions like steep global yield curves supporting bank lending and political gridlock keeping legislative risk low are more important drivers than short-term headlines.
The Federal Reserve chair nomination process saw Kevin Warsh's confirmation hearing on Tuesday, with the Department of Justice closing its investigation into current chair Jerome Powell just today. Republican Senator Thom Tillis had been opposing Warsh's appointment pending the DOJ investigation resolution. Powell will remain as chair until a successor is confirmed, with his term ending May 15th. The hosts argue that Fed chair changes are less impactful than headlines suggest, as the 12-member FOMC sets policy collectively and new chairs often deviate from nomination positions.
Regarding market performance, 2026 has seen significant volatility with a nearly 9% pullback related to Middle East conflict and energy disruptions, approaching but not reaching correction territory. Despite this decline, markets have resumed upward momentum and set new all-time highs. The hosts highlight how markets are forward-looking, quickly pricing in widely-known information and rebounding as reality proves less dire than feared. They note temporary shifts in market leadership, such as energy stocks surging with oil price spikes, but warn against chasing short-lived trends that often result in being 'whipsawed.'
Key Insights
- Markets have largely moved on from the Middle East conflict, having already priced in the war and its likely effects despite ongoing concerns
- Steep global yield curves supporting bank lending and political gridlock keeping legislative risk low are more important long-term drivers than fleeting headlines
- The Fed chair position is typically less impactful than headlines suggest because the 12-member Federal Open Market Committee collectively sets monetary policy
- Markets are forward-looking and quickly price in widely-known information, often rebounding quickly as reality proves less dire than feared
- Investors who attempt to chase short-lived market trends during turbulent periods often find themselves whipsawed, buying into rallies just before they reverse
Topics
Transcript
[0:05] Hello, and welcome to This Week in Review. This weekly segment is designed to highlight a few important developments you may have missed this week, what they might mean for markets, and most importantly, the potential impact for investors. To stay up-to-date with our latest market insights, subscribe to our YouTube channel or visit FisherInvestments.com. Now, let's review what happened this week. First, an update on the Middle East. Earlier this week, President Trump extended the two-week ceasefire with Iran beyond its original Wednesday deadline. The ceasefire is now set to remain in effect indefinitely [0:37] while Pakistan and other countries seek to help restart talks between the United States and Iran. For the time being, the closure of…
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