Ukraine, inflation, FTX: The biggest stories of 2022

Yahoo Finance columnist Kevin Cirilli highlights some of the biggest news stories of 2022.

Video transcript

[AUDIO LOGO]

JARED BLIKRE: 2022 brought us a lot of major headlines, from sky-high prices to a war in Europe and collapses in the crypto market as well. Here to break down some of these major stories is Yahoo Finance's contributor Kevin Cirilli. Kevin, what's your biggest story of the year here?

KEVIN CIRILLI: I think we're going to have to go with inflation. I think that there's no way to look at it. But inflation, which currently hovers at about 7.1% compared to this time last year, according to the Consumer Price Index, was the dominant story.

And it touched on everything from politics, where we saw it have a reverse effect than many pollsters thought in the midterm elections where Republicans underperformed, but also to policy. The Inflation Reduction Act signed into law by President Biden over the summer was a very partisan issue, several-- a hefty price tag, mind you, and Democrats on board for it.

Now, the biggest question that I have when I look into the future with inflation is whether or not Republicans, when they take control of the House of Representatives, will try to peel back some of that Inflation Reduction Act. It also, we should note, touched on the Federal Reserve and interest rates. Fed Chair Jay Powell continuing to raise interest rates.

And that garnered some criticism from progressives like Senator Elizabeth Warren from Massachusetts, who had asked openly whether or not those interest rates are going to tip the economy into a recession. But inflation was the center of all of the debate on the economic front here in DC, as well as Wall Street and elsewhere.

SEANA SMITH: And, Kevin, another massive story, obviously on a global scale, Russia's invasion of Ukraine, of course, the US role in this, whether or not-- or how much we should be providing in terms of support and towards-- of aid. That, of course, is still being debated on Capitol Hill. Your takeaway just from the headlines that we've seen this year.

KEVIN CIRILLI: As we look forward, the biggest economic impact from Russia's egregious war with the Ukraine has been its impact on energy markets. And just in the last couple of days, Vladimir Putin saying that any nation who complies with the West's price cap on $60 per barrel for seaborne oil coming from Russia will not be able to receive Russian energy.

That has really laid bare just how reliant the world, particularly Europe, parts of Europe in particular, are on energy from Russia. The crippling sanctions that were imposed against Russia have really put Vladimir Putin in a tough spot economically and Russians-- not Putin, Russians in a tough spot economically.

But from a policy standpoint, a broader takeaway from this conflict is that Americans of all political stripes still understand the value of an allied response and support for NATO. And the polls suggest that Americans value NATO. The polls also suggest that Russians are growing increasingly skeptical of Vladimir Putin and his long-term plan and whether or not he has one as a result of his invasion of Ukraine.

JARED BLIKRE: Kevin, also on the didn't see this coming list, crypto and FTX, got to talk that before we go. The collapse of FTX happened toward the end of this year. Why do you still think it's one of the biggest stories of 2022?

KEVIN CIRILLI: Well, when we look forward into 2023, what does this mean for Securities and Exchange Commission Chair Gary Gensler, who's facing a lot of scrutiny from progressives as to whether or not they took their eye off the ball and let the cryptocurrency debacle happen? Secondly-- he says he didn't, and he told Yahoo that he didn't.

Secondly, as it relates to Americans who have digital assets, who are invested in cryptocurrency, many of them now wondering what this means for their tax returns. The Biden administration just announcing in the last week that Americans will not have to disclose on their 1099-- this was initially a part of the Inflation Reduction Act-- their digital holdings. They've delayed that. So if you do have those digital holdings, you want to check that out with your tax accountant because that has been delayed for this tax season.

And then thirdly, will this finally force compromise between Republicans and Democrats? That margin and the balance of power is incredibly narrow. Will they come together to finally get the rules of the road? Kirsten Gillibrand, as well as others, working on some type of bipartisan path forward for who has the policy turf on regulating digital assets and cryptocurrency.

SEANA SMITH: Certainly a number of huge stories that happened in 2022. It's going to continue into the new year. Kevin Cirilli, always great to have you. Thanks so much for joining us here this afternoon.