The US Federal Reserve (Fed) will raise rates by a quarter of a point in two weeks.

This has been indicated by the president of the issuing institute,

Jerome Powell

, in his appearance this Wednesday in the Financial Services Committee of the US House of Representatives.

The news has been a balm for equities that, before the invasion of Ukraine, doubted whether the increase would be a quarter or half a point.

At mid-session, the two indices of large companies, the Dow Jones and the S&P, were up 2% and 2.1%, respectively.

Powell has decided to start the post-Covid era rate hikes calmly, but the president of the central bank that controls the world currency has sent a message: the bull cycle is likely to be more intense than anticipated.

The reason?

Possibly the invasion of Ukraine.

Powell has also acknowledged that the 'Fed' is not yet capable of determining the impact of the war and the sanctions on Russia when he said that "the short-term impact on the US economy of the invasion of Ukraine, the ongoing war, the sanctions, and future events, is highly uncertain.

But he has also explained that forecasts of a drop in inflation are not conclusive, and has stated that "if inflation is higher or more persistent, we would be willing to act more aggressively".

Sanctions on Russia and the war are

exacerbating problems in the global supply chain

just at a time when the first signs were beginning to arrive that it was returning to normal.

At the same time, Russia is the second largest oil producer in the world and, although the sanctions do not affect its energy sector, payments for crude oil imports are being hampered by the measures adopted by the US, the EU and various countries. Asians.

Finally, both Russia and Ukraine are major exporters of agricultural products and fertilizers, which in turn can impact food prices.

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