Economics

Ukraine war risks inflation spike, Fed’s Powell warns

Federal Reserve chairman hints at continued plans to hike rates as conflict in Europe threatens supply chains

Federal Reserve chairman Jerome Powell said that Russia’s invasion of Ukraine was likely to push up inflation, a setback to central bank expectations that price pressures would diminish in the coming months.

Because of Russia’s role in global energy and other commodity markets, “we’re going to see upward pressure on inflation at least for a while,” Powell told the Senate Banking Committee on 3 March.

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