The Clap👏 JPMorgan (NYSE: JPM) says that with all the uncertainty surrounding the Russia-Ukraine tensions, the Fed’s monetary policy remains at the top of their worries for equity markets.
It all ties together🎈 While we know the Fed is set to increase interest rates multiple times this year, investors are worried about what implications the Russia-Ukraine crisis could have on the Fed’s policy.
With oil prices surging to highs not seen in almost eight years (& is expected to rise to $120/barrel), & Russia being a key wheat & corn exporter, inflation worries have increased.
Sanctions could further exacerbate inflation.. ..& the U.S. knows it. Economists expect the consumer price index to hit 9% if oil does reach the expected $120/barrel.
The Fed was already expected to take an aggressive approach towards taming high inflation, & current tensions are not making matters any easier.