Kevin Swanson Discusses the Potential Impacts of the Russia-Ukraine Crisis on Inflation with Horsesmouth
The Russian invasion of Ukraine has impacted countless lives and markets worldwide, but will it also lead to a further increase in inflation? To help investors learn how the war in Eastern Europe may impact inflation, Horsesmouth recently spoke with Potentia Wealth CEO and Private Wealth Advisor Kevin Swanson for insight.
While inflation has certainly increased since the Russia-Ukraine tensions began, Swanson does not believe that the crisis will have a lasting impact. However, he is concerned that the U.S. Federal Reserve might misread current economic conditions as Swanson believes the current inflation is caused by the broken supply chain, which the central bank cannot solve with monetary policy.
Meanwhile, “Ukraine is going to exacerbate the situation, particularly with regard to natural resources,” Swanson tells the publication. As a result, “I see a couple of rate hikes on the horizon,” he explains. He also says that he is mindful that the Fed may take it too far, with some experts predicting five rate hikes this year.