(Kitco News) – Russia’s invasion of Ukraine has added further uncertainty to the global economic picture. It might slow the Federal Reserve from aggressively tightening interest rates, but it hasn’t completely taken rate hikes off the table, according to some analysts.
Some market analysts have noted that while the conflict in Eastern Europe is creating geopolitical uncertainty, the biggest threat to the global economy remains rising consumer prices, which central banks have to address.
The geopolitical tensions cooled slightly late Thursday afternoon after President Joe Biden announced further sanctions against Russia but also said that the U.S. would not send troops into Ukraine. He also did not sanction the oil market or Russia’s role in the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Colin Cieszynski, chief market strategist at SIA Wealth Management, said despite no matter the geopolitical landscape, the Federal Reserve can’t afford to leave interest rates unchanged.