U.S. Economy is Strong Despite Geopolitical Uncertainty, Wells Fargo Says
The conflict in Ukraine is pushing already record-breaking inflation higher and adding to market volatility. However, the U.S. economy has shown strong signs of being able to weather the storm, according to the most recent Wells Fargo Weekly Commentary.
"U.S. financial exposure to Russia appears to be rather limited," Wells Fargo says. "… the data suggest that much of [Russia's] external debt is likely held by countries in Western Europe. Data from the U.S. Treasury Department show that Americans held only $17 billion worth of Russian debt securities at the end of 2020 (latest available data) …"
In February, the U.S. showed strong gains in employment, signaling an increasingly healthy economy. Employers added 678,000 jobs last month. "The unexpected strength in nonfarm payrolls is a nice offset to the deeply troubling news coming out of Ukraine. Nonfarm employment easily blew past consensus expectations," the commentary reads.