NEWSLETTER
Thursday / September 29Sep 29
Thursday / March 3
Powell's comments
Federal Reserve Chairman Jerome Powell thinks rate hikes are coming but said on Wednesday that Russia's invasion of Ukraine added uncertainty to the outlook.
Powell said 25 basis point hikes are to come, although he left open the possibility of moving more aggressively if inflation continued to rise.
Powell said 25 basis point hikes are to come, although he left open the possibility of moving more aggressively if inflation continued to rise.
In statements prepared for his testimony before the House and Senate committees in Congress this week, Powell acknowledged the "tremendous hardship" posed by Russia's invasion of Ukraine.
“The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely,” Powell said. “The near-term effects on the U.S. economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come, remain highly uncertain,” he added.
“Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways. We will need to be nimble in responding to incoming data and the evolving outlook.”
Russia isolated
The United Nations General Assembly voted overwhelmingly on Wednesday to condemn Russia for its invasion of Ukraine, demanding that Moscow stop fighting and withdraw its military forces.
Backed by 141 of the assembly's 193 members, the resolution was adopted at a rare emergency meeting held by the UN Security Council.
The text of the resolution deplored Russia's "aggression against Ukraine". According to the UN website, the Security Council last called the General Assembly for an extraordinary meeting in 1982.
Along with Russia itself, Eritrea, North Korea, Syria, as well as Belarus which hosts Russian forces invading Ukraine, refused to condemn the invasion.
While the resolutions of the General Assembly are not binding, they carry political weight as Wednesday's vote represents a symbolic victory for Ukraine and increases Moscow's international isolation. Even Russia's traditional ally Serbia voted in favor of Kyiv, with 35 countries abstaining, including China and some other Russian allies.
Oil prices
US oil climbed to the highest level in more than a decade on Wednesday. The global benchmark Brent surpassed $113 a barrel after OPEC and its oil-producing allies, including Russia, agreed to hold production steady.
The oil market was already hot before the Russian invasion of Ukraine, traders are now worried about supply shortages.
West Texas Intermediate crude futures, the US oil benchmark, were up more than 8% at $112.51 a barrel, the highest level since May 2011.
Prices then dropped from the top. WTI traded at $106.73 around 11:30am in the US, while Brent traded at $109.18.
OPEC and its allies said Wednesday they will stick to their previous plans to increase production by 400,000 barrels per day in April, above the March level, despite the steep rise in oil that has pushed prices well above $100.
US stocks
Stocks rebounded sharply on Wednesday, despite the continued rise in oil prices amid the intensifying conflict between Russia and Ukraine.
The Dow Jones Industrial Average closed at 33,891.35, up 596.40 points, or 1.79%.
The S&P500 rose 1.86% to 4,386.54, while the tech-heavy Nasdaq Composite rose 1.62% to 13,752.02. The gains effectively reversed losses in Tuesday's session.
