He added he was hopeful that China would help find a resolution to the deadlock in the Strait, saying that the free movement of ships was in its economic interest.
“China benefits from open waterways worldwide. They run the shipping lines, own the containers, and make huge profit from trade with the rest of the world. So, they would be a big loser if Iran in some way had control of the Strait of Hormuz.”
On the economic outlook for ordinary Americans ahead of Tuesday’s US inflation data for April, Malpass said prices were heading higher. “I expect some up, yes, prices will go up on many products,” he said.
But he added “robust” jobs data showed the US economy was resilient.
