White House: rouble plunge has Russia between 'rock and hard place'
[WASHINGTON] Russia's rouble crisis has put Moscow's economic policy "between a rock and a hard place," but the impact on the United States should be limited, President Barack Obama's top economist told reporters on Tuesday.
The rouble has plunged more than 50 per cent this year versus the US dollar, thanks in part to slumping oil prices and Western economic sanctions, dropping more than 11 per cent on Tuesday. "If I was chairman of President Putin's council of economic advisers, I would be extremely concerned," said Jason Furman, the chairman of Obama's Council of Economic advisers. "They are between a rock and a hard place in economic policy," Furman said, noting the country has raised interest rates to defend its currency, hurting the domestic economy and confidence. "It's a serious economic situation that is largely of their own making and largely reflects the consequences of not following a set of international rules," Furman said.
He said the United States has limited exposure to the Russian rouble crisis, with exports to Russia accounting for only a tenth of one per cent of the US gross domestic product.
But other economic slowdowns around the world do present a challenge to the United States, Furman said, citing weakness in Europe and Japan, and slower growth in China.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Canada Is exploring higher tariffs on Chinese EVs: Trade Minister
Nancy Pelosi’s husband’s attacker jailed for 30 years
US, TikTok seek fast-track schedule, ruling by Dec 6 on potential ban
Higher US food prices lead to a shift in shopping habits
Indian spice trade group fears plunge in exports due to ETO pesticide scrutiny
Abu Dhabi’s US$302 billion fund deepens AI and private credit push