Ukraine Invasion
Russia has amassed more than 100,000 troops near Ukraine’s border in recent weeks.
Although some are wary of an invasion, few are preparing for that possibility. Ukraine’s government has also sought to play down the threat, urging calm while its Western allies sound the alarm.
“Today the best friend for enemies is panic in our country and all this information that helps only for panic, doesn’t help us,” President Volodymyr Zelenskyy told reporters on Saturday.
“We are not afraid of anyone, and we do not panic. We conduct training and keep the situation under control.” the president wrote on his Facebook page.
President Biden warned Vladimir V. Putin of Russia that invading Ukraine would result in “swift and severe” costs to Russia, diminish his country’s standing and cause “widespread human suffering,” as Western officials made another diplomatic push to dissuade Mr. Putin from pressing forward with an attack.
Furthermore, fighting in Ukraine could affect the Federal Reserve’s plans for tightening monetary policy.
Beyond crude, Russia’s role as a key supplier of natural gas to Western Europe could send prices in the region soaring. But the Fed could stay aggressive if oil prices keep surging. Crude has already risen to seven-year highs on Ukraine fears.
“By pushing energy prices even higher, a Russian invasion would likely exacerbate inflation and redouble pressure on the Fed to raise interest rates,” said Bill Adams, Chief Economist for Comerica Bank, in a Friday note.
“From the Fed’s perspective, the inflationary effects of a Russian invasion and higher energy prices would likely outweigh the shock’s negative implications for global growth,” he said.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.