we don't know that it has topped out six months ago. Once the inflation genie is out of the bottle any down or sideward movement is likely to be temporary.
Not even close. Oil is being kept artificially low. Biden just release more crude oil from the US strategic petroleum reserve. I am just waiting on the day when there is not a drop left. OPEC has raised the price of oil $2 a barrel, Russia has cut oil output by 8%. All indicate higher oil prices when the US strategic petroleum reserve runs out. Recession in Europe is just starting with more on the way. US is next as Europe is the 2nd largest trading partner of the US after China. Europeans are close to getting tapped out. Natural gas prices alone up 300%. Oil price spike still to come and oil is highly inflationary. Practically, everything you do will result in using crude oil, refined as gasoline, diesel, aviation fuel, etc.
It's like the old saying "Give 'em an inch and they'll take a mile". Well we gave them an inch,they took their mile,and do you really think they'll give any of that mile back by lowering prices? Hell no they wont!
I agree. Now if we really pushed for domestic oil production and eased all the Obama/Biden regulations, we could turn it around, but even that wouldn't be instant. You can't just turn wells back on like a light switch and ramp up production right away. And we know Sleazy Joe has no interest in energy independence.
Powell is not going to fix inflation at this rate. He should do a one time 5% additional increase at this time to bring rate to 10% then do nothing for 3 months then cut rate gradually. But what do i know i was a college dropout.
A 500 BPS rate hike in one sitting would break the world's economy. And you don't need a college degree to figure that out.