Benjamin Melman and Michael Nizard of Edmond de Rothschild Asset Management noted in a report that the immediate consequences of the U.S. arrest of Venezuelan President Maduro are primarily concentrated in the oil market, but the true economic impact is a medium-term issue. They stated that the eventual easing of energy tensions could lead to lower inflation and allow for interest rate cuts. Chief Investment Officer Melman and Nizard, Head of Multi-Asset and Overlay, stated: “If there is at least some political stability, coupled with a gradual return of foreign investment, Venezuela could once again become a structural deflationary factor in the global economy.” They added: “Major geopolitical shocks do not necessarily lead to inflation in the long run.”