Why the Russian invasion will have huge economic consequences for American families

That’s because the world economy and financial markets are interconnected. As Covid demonstrated, events on one side of the planet can set off shockwaves on the other side.In this case, an JPMorgan warned that oil prices could Higher energy prices would make it more expensive to fly and keep transportation and input costs elevated for businesses already grappling with surging expenses. Businesses would most likely pass along at least some of these higher costs to consumers in the form of price spikes.Beyond energy, other commodities could experience price volatility. Russia is a major producer of metals, including aluminum and palladium. Russia is also the The Fed could choose to shrug off intensifying inflation as just a temporary phenomenon driven by the Russia-Ukraine situation. However, that strategy did not work out well last year, with the Fed eventually abandoning its “transitory” description of Covid-related inflation.At a minimum, the Russia-Ukraine situation will further complicate the Fed’sThe hacking of the Colonial Pipeline last year showed just how disruptive a cyberattack can be in the real world. The cyber-intrusion shut down one of the most important pipelines in America, sparking panic buying that left many gas stations in the Southeast empty.A successful cyberattack on America’s financial system — a top worry of Fed Chairman Jerome Powell — could be even more disruptive.A cyberattack is just one example of how the Russia-Ukraine situation could spill over into daily life. “Wars evolve in unpredictable ways,” JPMorgan’s Kelly said. “No one should assume that they can see all the impacts of a war at its outset.”