Energy prices will fall when economy tips into recession, analyst says
Recession is 'unavoidable,' said Stephen Schork
Energy prices will fall when economy goes into recession, analyst says
The Schork Group Principal Stephen Schork argues recession is 'unavoidable' as U.S. grapples with rising energy costs.
As inflation continues to stifle U.S. economic growth, some experts are sounding the alarm on a potential recession as a result of surging energy prices due and the Russia-Ukraine war.
Stephen Schork, principal of The Schork Group joined "Mornings with Maria" Thursday to provide insight on a key indicator that may signal an impending recession, something he claims is "unavoidable" at this stage for the country.
"Energy prices are going to fall. The bad news is they’re going to fall because of recession," he warned.
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Schork explained when you "look at the data going back beginning with the Arab oil embargo in the mid-70s" a significant rise in energy and food costs have led into every recession and "this is where we are now."
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The Schork Group Principal Stephen Schork discusses gas prices amid inflation in the U.S., the possibility of a recession and its global impact, Russian oil exports and the Biden administration's energy policies.
"Consumer incomes are falling. They've fallen 13 out of the last 14 months as a result of this runaway inflation. That can only translate down the road into an economic downturn sooner… 6 to 12 months, rather than later, 18 to 24 months."
Meanwhile, the World Bank recently announced a decline in global growth, particularly in Europe and China. Schork pointed out that rising inflation will be a "tipping point not only for a recession here in the United States but elsewhere."
Energy analyst Stephen Schork told FOX Business that recession is "unavoidable." (iStock / iStock)
"If we sneeze, the rest of the world catches a cold… So if we’re going into recession… Europe and China are certainly going into recession… The economic slowdown is coming, but inflation is not falling fast enough."