DAvid Solomon, CEO Goldman SachsSaid in an interview with CNN that inflation in the United States has not reached its peak. He urged people to be prepared for rising inflation and the coming recession.
Solomon revealed that while economists believe inflation is already peaking, business people and supply chain experts have a different view. According to him, inflation is going to increase further. On Goldman’s second-quarter earnings release, Solomon addressed investors, saying that inflation is frozen in the economy and may not come down in the second half of the year.
According to data from the US Bureau of Labor Statistics on the consumer price index for June 2022 should be at 9.1%. This is the highest in the last 40 years. The CPI is a strong indicator of the level of inflation in the country. The Bank of England also disclosed the UK Consumer Price Index to be 9.4%.
Solomon believes that the current state of the economy is due to several factors, such as the pandemic, the monetary relief package during it and the dovish policies of the Fed. Because of this it will take a long time to cool down.
A notable author and economist, Pete Grandich, has a similar view of inflation as Solomon. He also revealed that there was no supply chain crisis in the last major inflation 40 years ago, it has made this economic period worse.
Lark Davis, a prominent crypto investor and influencer, has a different perspective. He believes that inflation is already peaking and the CPI figures in July will be better given that prices have calmed down.
Inflation also has a major impact on the prices of crypto assets. The Fed raised interest rates by three-quarters of a percent due to CPI data released in May. After this there has been a significant decrease in crypto prices.
After the release of CPI data for June, prices initially went down but then rallied and stopped. According to Davis, fears about the CPI data may already have cost.
Solomon believes that if inflation continues to rise, the crypto princess could again decline.