Goldman Sachs CEO David Solomon shared a comment in a new interview with CNN that he stated that inflation in the US has not yet reached its peak. Stating that while economists believe that inflation has peaked, those in the business world and supply chain experts think that inflation still continues to rise, the CEO frightened with his comments. Here are the details of the interview.
The US Bureau of Labor Statistics recently shared that it measures the Consumer Price Index for June 2022 at 9.1%. This is a high rate, representing the highest rate in the last 40 years. CPI is an important data which is also interpreted as monitoring the inflation levels in the country. UK consumer price inflation was also announced as 9.4% by the Bank of England.
David Solomonbelieves that current economic conditions are the result of a number of combined factors, such as the monetary aid package during the pandemic and the Fed’s dovish policies. As a result, it takes a longer time to cool down.
Pete Grandich, a well-known writer and economist in the field of economics, also believes that inflation is much higher than the 9.1% CPI data announced by the government. He also pointed out that the massive inflation 40 years ago did not experience a supply chain crisis that made this economic period worse.
However, some believe that inflation has indeed peaked. Lark Davis, a prominent crypto phenomenon and investor, said that as prices cooled CPI dataThose who believe that July will be better for the month of July.
How Inflation Can Affect Crypto
It is one of the claims that has been in the press for a while that inflation can have a big impact on the price of crypto assets. CPI data in May caused the Fed to increase interest rates by three-quarters. As a result cryptocurrency prices had dropped significantly.
In the CPI data for June, prices first responded with a sharp downward move, but then found ground and rose. According to Lark Davis, fears about these CPI data may already be priced in.
However, if inflation continues to rise, as Solomon believes, crypto prices could fall again.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.