Will Russia's Invasion of Ukraine Raise Inflationary Pressures?

U.S. equity markets were mixed with just over two hours remaining in the trading day, with the Dow Jones Industrial Average and the S&P 500 Index holding small gains and the Nasdaq Composite and the Russell 2000 Index down nearly 1%. Yields on the 10-year U.S. Treasury note and the 30-year bond backed up again, as investors continue to seek safety amid the unfolding crisis in Eastern Europe. Crude oil prices slipped some, with West Texas Intermediate down 0.55% to $109.99 and Brent off 0.57% to $112.29. But grains continue to reflect rising pressures on current and future supply, with wheat up more than 7% and corn up nearly 5%. And it doesn’t appear as though Russian President Vladimir Putin is any closer to succumbing to the global sanctions regime that’s targeted the country’s oligarchs and hamstrung the lives of ordinary Russians. Indeed, missile attacks against Ukraine’s major cities are intensifying. Meanwhile, the fed funds futures market is still pricing in five interest rate hikes by the Federal Reserve, as potential inflationary pressures increase. Michael Gayed, Portfolio Manager at Toroso Investments, and Frances Coppola, who writes and speaks on banking, finance, and economics, join Real Vision’s Ash Bennington to assess the Russia-Ukraine crisis and its broader global impact.

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