What Does Russia’s Invasion of Ukraine Mean for the U.S. Economy?
With Russia’s invasion of Ukraine, how would it affect the world economy and how would it affect the US economy? The invasion could potentially bring economic repercussions, ramping up uncertainties, impacting markets and further increasing inflation as gas and food prices rise around the world. This puts more pressure on Washington leaders to respond, even though it is unclear how exactly they will intervene. The Federal Reserve is still expected to move next month to begin raising interest rates to slow inflation, but it could face new questions about how best to steer an economy during a rare military conflict involving Russia. President Biden, meanwhile, has said he would consider measures to blunt the impact of rising oil prices on Americans, including the sale of more oil from the Strategic Petroleum Reserve. He warned energy companies not to opportunistically jack up prices, while acknowledging that the economic consequences of Russia’s invasion of Ukraine would be felt by Americans. The magnitude of the potential economic fallout is unclear, but a foreign conflict could further delay a return to normalcy after two years in which the coronavirus pandemic has buffeted both the global and U.S. economies. American consumers are already contending with quickly rising prices, businesses are trying to navigate roiled supply chains and people report feeling pessimistic about their financial outlooks despite strong economic growth.
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