Is Putin A Friend Of The Federal Reserve?
Note: this byline is NOT A SUGGESTION OF POLITICAL MANIPULATION by Russia, don’t even go there. And ofc (of course), not financial advice, dyor.
Anyways, at a time that interest rates would rationally rise (Fed increasing interest rates, selling its MBS holdings), the Ukraine situation could have the opposite effect as the world seeks safe havens and in general, at this point in time, that means the US Dollar, and the dominant asset in the US? The US Treasury Bond market. Note: this is definitely different than years ago, when the Japanese Yen was see as the relatively-uncorrelated currency, that is history.
Net? For unrelated reasons, Chairman Powell may have a respite, to some degree, for now, ‘courtesy’ of the Ukraine situation. Which one dominates is an open question. Hmm.