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Television personality and author Jim Cramer said the speed of decline in oil refutes the theory that inflation has not peaked yet. “The inflationistas simply refuse to believe it could have peaked regardless of the evidence,” Cramer tweeted.
The speed of the decline in oil i think puts the lie to the notion, again, that we have not had peak inflation. The inflationistas simply refuse to believe it could have peaked regardless of the evidence
— Jim Cramer (@jimcramer) August 2, 2022
From the highs of over $107/barrel seen in early June, West Texas Intermediate prices have come down to below $94/barrel.
Why It Matters: There is a huge debate surrounding whether inflation has peaked or may move towards further highs. Fed officials recently stated that there was no sign of inflation easing. San Francisco Fed President Mary Daly said, “we are still resolute and completely united” in the objective of getting inflation down around the 2% inflation target, reported Bloomberg.
Head of the Chicago Fed Charles Evans earlier said policymakers are “probably at least a couple of reports away” from seeing the kind of improvement in the inflation data which would cement the notion they are on the right path with monetary tightening, according to Bloomberg.
On Recession: Cramer also indicated how economists are playing safe stating it is not possible to beat inflation without a recession. “Have you noticed that no day goes by without some economist saying it will be impossible to beat inflation without a nasty recession? It’s such an easy thing to say. None will be held accountable,” he said.
Have you noticed that no day goes by without some economist saying it will be impossible to beat inflation without a nasty recession? It’s such an easy thing to say. None will be held accountable. I will talk about this at Thursday’s club meeting.. You have to join up!
— Jim Cramer (@jimcramer) August 2, 2022
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Image and article originally from www.benzinga.com. Read the original article here.