- The Russia-Ukraine crisis will impact the US economy based on how it affects the
Federal Reserve , said Rockefeller Capital Management's CEO. - Because of the war, the Fed could become less aggressive than investors previously anticipated, Greg Fleming told CNBC.
While
"The impact on the larger economic picture and
Fleming, who's firm oversees $95 billion in client assets, noted that war in Ukraine, skyrocketing energy prices, and the downward pressure on Europe's economy will all impact the US central bank's actions.
The central bank could be slightly less aggressive than they had previously planned on rate hikes, he said, with a 25-basis-point move rather than 50. To Fleming, the pace of Fed tightening will dictate how the US economy fares moving forward during or after the war in Ukraine.
His comments echo those of top economist Mohamed El-Erian, who last week said Russia's invasion means the Fed wouldn't be able to hike interest rates as aggressively.
Meanwhile, the geopolitical crisis has rattled global markets, and oil has jumped above $100 a barrel, adding more inflationary pressure to the economy.
"We're at a historic point for the Fed," Fleming said. "They have to break the back of the inflation expectations that are starting to get embedded in the economy."