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Maxim Oreshkin: The New Head Of The US Federal Reserve Will Have To Work In Difficult Conditions

 "The new head of the US Federal Reserve will have to work in difficult conditions." The combination of low unemployment and low inflation, which is now observed in the US economy, is unlikely to last for a long time and is associated with the expectations formed during the long crisis. a sharp increase in wages to inflation dynamics may come the so-called minsky moment. 


In order to prevent an acceleration of inflation, the Fed may be forced to tighten policy more seriously than it is now Waiting by market participants. In this case, the potential revaluation of the rate increase will lead to a correction of prices of financial assets and will cause volatility in the global markets.

As for the impact on Russia, in recent years the economy has become much more resilient to fluctuations in the external environment. A key role here was played by structural macroeconomic transformations - the transition to inflation targeting, the introduction of budget rules, and the Government's operations in the domestic foreign exchange market. Thanks to these measures, the Russian economy has successfully adapted to global challenges. Since the second half of 2016, GDP growth has resumed. In the future, we expect the continuation of these positive trends, no matter how the situation develops on the world markets. "

 

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