The Russia-Ukraine war complicates the federal inflationary struggle
Russia's invasion of Ukraine will not stop the Federal Reserve from raising interest rates at their next policy meeting in March, but it may slow the pace of gains.
Russia's invasion of Ukraine is not expected to stop the Federal Reserve from raising index interest rates at its policy meeting in March, but it does shake up the forecast about how fast the federal may move.
Now the central bank must balance the risk of even higher inflation as a result of a prolonged war if it moves too slowly, with the possibility of an economic downturn
Sharp - or even a recession - if it moves too aggressively.
Trump wants a 'big' cut from the Federal Reserve. Instead, get ready for a small one. - cleveland.com Chairman Jerome Powell may raise the federal intentions during his scheduled testimony to this week's Congress.
While tensions between Russia and Ukraine escalated in February, with multiple warnings from the US government that an imminent invasion, investors had reduced their expectations about the degree of aggression they might take to curb inflation, by 7.5% in the last 12 months. January - a record of 40 years.
A tool used by market sentiment to calculate the probability of a federal interest rate move in the coming policy meetings, showed that in mid-February, investors began to consistently predict a quarter-point, instead of half-point, rise in the federal index rate.
Continue reading the site:
The Russia-Ukraine war complicates the federal inflationary struggle
Responses