2 years ago
The chair of the Biden administration’s Council of Economic Advisers on Monday warned that Russia's invasion of Ukraine has “clouded” the economic outlook for the United States in the coming year as Americans already feel the pain of rising prices.
Cecilia Rouse, in an interview with POLITICO’s Women Rule, said Russia’s aggression “generates some risk” for the U.S. and the global economy as the West piles on sanctions to punish the Kremlin. The chair of the economic advisers said the biggest concern for the U.S. is rising gas prices, though she noted President Joe Biden is working with allies and partners to find solutions, including additional releases from the nation's strategic petroleum reserves.
“The economic risks will hinge on the length of this war. And the more quickly it is resolved, then the smaller the impacts,” Rouse said. “The longer it goes on, the deeper the uncertainty. So I would say that this has definitely clouded the outlook.”
Biden's approval ratings have dipped in recent months as consumer prices have risen across the U.S. ahead of November's midterm elections. Rouse said inflation has been “painful” for Americans, but said the rising costs are a result of the government supporting its people through the pandemic and the period of economic uncertainty that came along with it.
Rouse also said it appears the economic sanctions the U.S. and other Western nations levied are working. The Russian ruble plummeted on Monday as sanctions hit Russian banks, with Russians flocking to ATMs.
“The Russian Central Bank has increased, it’s doubled the interest rate it is charging, which is its attempts to support the ruble,” Rouse said. “And much of this is not only the fact that we have frozen their reserves, but other countries as well. And so, you know, the noose is tightening, in terms of — Putin just doesn't have access to the resources he was counting on.”
English (US)