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Ukraine Is Biden’s Defining Issue, and His Biggest Economic Challenge (NYT)
Russia’s war in Ukraine has become the greatest economic challenge of President Biden’s time in office, threatening to push the world into a recession that could endanger an already fragile American recovery.The combination of punishing sanctions, championed by Mr. Biden and his allies, and Russia’s retaliation has ricocheted through global food and energy markets, exacerbating already high inflation and undercutting global growth. An oil shock set off by the invasion sent average gasoline prices above $5 a gallon nationally in June, before they fell steadily in July and August.
This week, the European Union is expected to put finishing touches on a plan that would attempt to contain further economic damage by imposing a cap on the price that Russia can earn from selling a barrel of exported oil. The untested idea, engineered by Mr. Biden’s Treasury secretary, is aimed at keeping Russian oil flowing to the global market even as Europe plows ahead with new restrictions on Moscow’s oil sales.
In the year to come, that price cap and other efforts to manage the war’s global fallout should be Mr. Biden’s primary economic focus. With few legislative options available after his party lost control of the House, Mr. Biden will need to find ways to shield American markets from the war’s effects, including new international initiatives to bolster food supplies and ward off a potentially cascading financial crisis in developing nations.
I don't think the average American realizes that the vast majority of inflation is related to Russia's invasion of Ukraine. While Russia's economy is in a shambles, and unlikely to recover, the impacts around the world from his adventurism have been devastating.