Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why Falling Inflation Expectations Override Rising Oil Prices
Oil surged more than 5% in five days, with WTI futures above $89 and Brent near $97. But the bond market's 10-year breakeven inflation rate actually dipped to 2.26%. Lucas and Luna explore why long-term inflation expectations are declining despite higher energy costs, using data on core CPI and Fed credibility. They dissect the market's belief that this oil spike is temporary, and what it means for energy stocks and Fed policy. A must-listen for anyone trying to read the macro signals in energy markets.
#OilPrices #InflationExpectations #BreakevenInflation #WTI #Brent #FedPolicy…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.