Calamos Investments President and CEO John Koudounis analyzes the strength of the U.S. economy despite Iran-driven oil risks and weighs in on Kevin Warsh’s expected Fed takeover on ‘Mornings with Maria.’
Markets may face near-term volatility tied to oil prices and geopolitical tensions, but underlying economic strength and the prospect of lower interest rates could fuel a powerful next leg higher, according to a market expert.
Calamos Investments President and CEO John Koudounis joined FOX Business’ Maria Bartiromo on “Mornings with Maria” to discuss market resilience and why he sees further upside despite ongoing uncertainty.
Markets anticipate possible Fed rate cuts amid easing inflation. (istock / Getty Images)
Koudounis pointed to strong corporate earnings and supportive policy dynamics as key drivers behind recent market gains, noting that “the underlying economy is pretty strong” and that “earnings are doing really well.” He added that factors like tax-related cash flow are also helping support consumer activity and sentiment.
That backdrop, he argued, is helping markets look past short-term disruptions tied to rising oil prices and Middle East tensions. While “you’re going to see the market volatile because of the price of oil,” Koudounis said he expects those pressures to ease, with energy markets eventually stabilizing and supporting broader growth.
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“When that happens, we’re off to the races again,” he said, adding that “the market really, really wants to run.”
Looking ahead, Koudounis emphasized that monetary policy could play a critical role in accelerating economic momentum. If inflation remains contained, he expects interest rates to move lower, creating a more supportive environment for growth.
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“I think we’re going to have rates being lowered,” Koudounis said. “And I think that’s going to continue one of the biggest explosions in the economy that we’ve seen.”
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Despite ongoing uncertainty, including geopolitical risks and the upcoming midterm elections, he maintained a bullish outlook, noting that “we’re in a great position where we can handle this crisis” and that market performance remains “incredible” given current conditions.
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He added that the broader setup heading into and beyond the midterm elections is likely to remain “very, very positive for the markets.”