The Fed Could Take 10 Years to Get Inflation Under Control, Says Almonty Industries CEO

Almonty Industries CEO Lewis Black spoke to Kitco News about the U.S. economy, inflation, and other topics in this interview.

Almonty is a multinational mining company that focuses on tungsten exploration and mining. Black has more than 15 years of experience working in the tungsten mining sector. Black recently revealed that tungsten is used in batteries for electric vehicles. He explained that tungsten is used in the anodes and cathodes of batteries to speed up vehicle charging.

The executive acknowledged that the Russia-Ukraine conflict is contributing to recent inflation spikes, but pointed out that many commodities had already reached record levels before Russia invaded Ukraine.

“We have already experienced disruptions and all governments around the world have printed so many dollars. Black said that inflation is created when you force the economy to print so much money.

Right now, blame Putin. Some commodities have risen on the backs of the invasion. Some commodities were at or close to their all-time highs prior to the invasion.

“Inflation will continue to increase.” Recognizing your problem is the first step in recovery. He stressed that until this happens, things will spiral out of control.

Jerome Powell, the chairman of Federal Reserve, acknowledged Monday that inflation is ‘far too high’. According to Powell, the Fed will take all necessary steps to restore price stability and it will increase the federal funds rate by more that 25 basis points if necessary.

Black emphasized:

They must control inflation. It can take a decade to control inflation if it becomes out of control. It is crucial to act immediately – stop spending money, and decrease the amount of money that you circulate in government.

“And they must raise rates. He added that this is the only tool that works.

Almonty’s executive stated, “There is a real danger of shortages in short term due to exacerbated disruptions to the supply chain.”

Supply chain disruption can reduce the availability of products. You can also reduce consumer spending by reducing the availability of products. This helps to maintain inflation. He explained that if you don’t have the money to buy it, it’s impossible to spend it. This involuntarily reduces the flow money. This may stabilise or at most slow down the inflation rate.

Slower growth will result from supply shortages. The economy will take a backseat. These factors will slow inflation but you will still see it go into 2023,” Black said.

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