A spike in energy prices should really prompt the Fed to cut rates, says Ironsides' Barry Knapp

• Futures are down significantly due to the Iran conflict, causing crude prices to surge and the US dollar to strengthen.
• The stronger dollar combined with higher oil prices creates a significant economic problem for energy importers like Europe and Asia, while the US, as a major oil exporter, is less affected.
• Knapp argues the Fed's current policy is too tight for small businesses and households and too loose for long-term borrowers, leading to a K-shaped economy. He believes the Fed should cut rates to address this supply shock and stimulate growth.

Barry Knapp discusses the market reaction to the Iran conflict, highlighting surging crude prices and a stronger dollar, which disproportionately impacts Europe and Asia. He argues the US Fed's current tight monetary policy is exacerbating a K-shaped economy and that energy price spikes are a disinflationary supply shock, not an inflation problem, suggesting the Fed should cut rates to stimulate lending and growth.