, Columnist
Market Whiplash Underscores the Plight of the Federal Reserve
Russia’s invasion of Ukraine only muddies what was already a murky narrative about rate increases.
This is how the markets feel.
Photographer: Andrew Harrer/Bloomberg
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The combination of high U.S. inflation and Russia’s invasion of Ukraine has discombobulated U.S. markets. From Friday to Monday, traders effectively reduced the number of expected rate increases by the Federal Reserve to six from seven by next February, even though, by most accounts, the inflation outlook has only worsened.
What gives?