There could far-reaching economic consequences associated with the hostilities.
Economists are busy trying to predict by how much growth could slow down overall, but the immediate impact of the Russian action, along with Western sanctions, would be most severe for Ukraine and Russia. Unfortunately, as we have learned over the past two years, snags in one part of the world can disrupt the globe.
“The biggest impact is likely to come through commodity prices,” according to Neil Shearing, Group Chief Economist at Capital Economics. Although the U.S. does not rely on Russia for oil, energy markets are global, so any disruption to one part of the world would be felt here. Crude oil prices were already soaring towards $100 per barrel on a surge in demand, which caused prices at the gas pump to rise by 40% from a year ago.
Beyond the impact on gas prices, which no doubt will hurt Americans, the inflationary effect of the conflict means that the Federal Reserve is still on track to raise short-term interest rates at its March meeting, as previously telegraphed. Investors had already been concerned about higher rates, but the Ukrainian situation adds another level of worry to the picture. That means that we are going to see more volatility in financial markets.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jill Magid’s exhibition in Fort Worth uses coins as a metaphor for the spread of COVID-19The artist contrasts images of customers with images from the U.S. Mint.
Read more »
Ukraine FM slams 'traitors to humanity' for leaving Russia SWIFT loopholes: 'Money soaked in our blood'Ukrainian Foreign Minister Dmytro Kuleba called on all Russian banking transactions to be banned from SWIFT, including energy transactions.
Read more »
Live updates: 100,000 in Berlin protest Ukraine invasionThe latest on Russia’s invasion of Ukraine: • Vladimir Putin orders Russian nuclear deterrent forces on high alert. • Foreign citizens seeking to leave Ukraine report difficulties at the Polish border. • 100,000 people turn out to protest in Berlin.
Read more »
LA-based business owner with Ukrainian roots holds ‘Peace Jam’ for UkraineA Los Angeles-based bagel shop owner with Ukrainian roots held a “Peace Jam” for Ukraine Sunday to help raise money for those impacted by Russia’s military invasion.
Read more »
Russia attacks Ukraine: 1st UN General Assembly emergency session in 40 years setThe United Nations’ nuclear watchdog says missiles struck a radioactive waste disposal site in the Ukrainian capital of Kyiv overnight.
Read more »