US: 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 ruble has plunged more than 50 percent this year versus the U.S. dollar, thanks in part to slumping oil prices and Western economic sanctions, dropping more than 11 percent 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 ruble crisis, with exports to Russia accounting for only a tenth of one percent of the U.S. 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

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Russia , rouble , US , impact , dollar ,

   

Next In Business News

Nasdaq, S&P set to open higher on tech boost, earnings glee
Sasbadi reports highest ever quarterly revenue
Aneka Jaringan leverages order book for growth
Chin Hin Group to develop two lands with combined GDV of RM1.08bil
CLMT 1Q net profit rises to RM33.49mil on higher occupancies, positive rental reversions
Ringgit ends marginally lower on firmer US dollar index
MoF: Govt to establish high-level facilitation platform to oversee potential, approved strategic investments
Meta Bright signs RM24mil leasing contract with Australia company
OCR Group to develop RM313mil residential project in Rawang
Legacy Credit emerges as substantial shareholder in VCI Global

Others Also Read