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latest update on cryptocurrency: CEO of Goldman Sachs foresees higher inflation as markets deteriorate

22-Jul-2022 By: Sudeep Saxena
latest update on cry

In a recent CNN interview, Goldman Sachs CEO David Solomon asserted that the US inflation rate had not yet peaked. He disclosed that while supply chain specialists and businesspeople believe that inflation is still rising, economists may assume that it has peaked.

Divergent Views on Inflation

The Consumer Price Index for June 2022 was just issued by the US Bureau of Labor Statistics, and it is expected to be 9.1%. It is the largest increase of its kind in the previous 40 years. The country's inflation rate can be accurately predicted using the CPI. The Bank of England also reported that the consumer price inflation rate in the UK was 9.4%.

According to Solomon, the current state of the economy is the result of a number of interrelated variables, such as the pandemic, the monetary relief measures implemented during it, and the Fed's dovish monetary policy. It would take longer for it to cool down as a result.

Famous author and economist Pete Grandich also thinks that inflation is far greater than the government's reported CPI figure of 9.1 percent. The supply chain instability that is making this economic period worse was not there during the previous severe inflation, which occurred 40 years ago.

Some others think the rate of inflation has peaked, though. Major cryptocurrency investor and influencer Lark Davis thinks that since prices have dropped, the CPI report for July will be better.

The Impact on Crypto.

On the price of crypto assets, inflation can have a significant effect. The Fed raised interest rates by 0.75 percentage points in response to the May CPI figures. Cryptocurrency prices reacted by sharply falling.

In contrast, when it came to the June CPI statistics, prices initially reacted sharply downward before holding their ground and rising. Lark Davis claims that the worries about the CPI data may already be taken into account.

Solomon predicts that inflation will increase, which might cause another decline in cryptocurrency prices.


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