text: “Does Washington have any ability to prevent inflation from sharply escalating in the short run? My answer to that is ‘no.’” – Economic Outlook Group’s Bernard Baumohl“Housing inflation, as measured by the government, will likely jump to 6.5% to 7%.” – Former Treasury Secretary Larry Summers“The likelihood of a cyberattack on our payments system is high. If they [Russia] cripple the payments system, it’s going to seize up markets.” – Guggenheim’s Scott Minerd. (AC: Minerd warned last year of a 50% chance of a cyber attack on global payments systems, which include SWIFT, FedWire, and others. – M.S.)“When we put on the table the possibility that your dollars will become seized, or that you can’t move dollars, we’re telling the rest of the world to embrace other currencies in their portfolio, and we diminish the value of the dollar as the reserve currency.” – Citadel’s Ken Griffin“Investors have got to get used to it [market volatility]. You will inevitably have a lot of market volatility, both from the lack of bipartisanship and the reversal of [quantitative easing].” He added that equity prices are already “kind of high.” – JPMorgan’s Jamie DimonOutlook on oilWest Texas Intermediate crude has increased nearly 20% since the start of the Russian invasion from $91.59 to almost $110. Similarly, Brent Crude has increased from just under $98 per barrel to around $110, an increase of more than 12%. Petroleum analyst at GasBuddy, Patrick De Haan, noted the historical increase in gas prices between March and Memorial Day of between $0.25 and $0.75, so conflict in Eastern Europe will likely compound these price increases further. GasBuddy warns that consumers will see prices at the pump increase to $5 on average within the next two weeks. Chief Economist at JPMorgan, Bruce Kasman, revised his latest prediction for oil prices to top $110, down from previous estimates JPMorgan released at $150. Although considered unlikely, if sanctions are ever placed on Russian oil, some analysts estimate a price increase to somewhere between $150 and $200 per barrel. Several firms continue to predict oil will surpass $120 before settling at a level below $150 per barrel. Paul Sankey of Sankey Research touts that a price between $120-$150 will lead to “economic destruction,” as he doesn’t see a short-term recovery to declining inventories. (AC: Sharp increases to oil prices have preceded every recession since 1970. – T.W.)The information provided by Forward Observer in this report is for informational purposes only. It should not be considered financial advice. You should consult with a financial advisor to determine what may be best for your financial needs.— END REPORT