The Federal Reserve building in Washington, the US, January 26 2022. Picture: REUTERS/JOSHUA ROBERTS
But the US also started with far more exuberant valuations set against the worst inflation in four decades and the promise of rising interest rates, all of which is still true. The growth impact from the war and the retaliatory sanctions won’t be as painful in the US, but it’s still a net negative on top of an already daunting combination of risks — threats that can be tackled only through a rare combination of deft monetary policy and outside assistance.
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