Economist Jeremy Siegel believes that the current rise in the oil price after the OPEC + decision to implement new production cuts will not lead to a further rise in inflation.
Oil prices jumped by more than 6% after OPEC + decided to implement an additional reduction in production levels until the end of this year.
Despite this, natural gas prices fell to the lowest level in 33 months.
In an interview with CNBC, the Wharton School professor said: What’s interesting to me is that today the price of natural gas – which is more important for heating and electricity generation – has hit new lows.
“The prices of much of the energy we use are not going to go up, at least in the near term,” he added.
Siegel also pointed out that the Fed usually focuses on inflation, which excludes energy prices, pointing out that America is in a unique position compared to other non-oil-producing countries.
And Siegel continued: The Fed often monitors inflation, which excludes food and energy components, and America is almost independent in the field of energy compared to Europe and Japan.
The biggest risk to stocks, in Siegel’s view, is that the Fed will continue to raise rates even as it takes time for the Silicon Valley bank implosion to become felt throughout the broader economy.