Will you run out of beer? The energy crisis is spreading across Europe

Jerome Powell's speech in Jackson Hole did not bring many surprises - the Fed chairman only confirmed what the Federal Reserve had been communicating for months. A dedicated fight against inflation and a reluctance to repeat the mistakes of the 70s led to a sharp sell-off of US stock indices.

Meanwhile, the energy crisis in Europe is deepening, pushing the prices of gas and electricity futures contracts to astronomical levels. This is reflected, among other things, in consumer sentiment in Germany, which is already at a much lower level than during the coronavirus pandemic.

Interest rates

So central banks remain in a spot - historically, most of the monetary tightening cycles in the United States ended in a recession. However, continuation of interest rate increases may trigger a double collapse in demand when households are hit by surges in electricity prices. On the other hand, OPEC's tough stance on oil production threatens to rationalize electricity, and its high costs are likely to lead to production halt, thus hitting economic chains.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which we answer the question - will there be a shortage of beer?

• The poverty rate in Western economies is rising
• What's next with gas prices and electricity in Europe?
• Are we facing a slowdown or a deep recession?
  

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of the coronavirus on the global economy, market analysis precious metals.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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