The lasting impact on the US economy will still come from the Fed even as the war in Ukraine intensifies, $95 billion wealth management chief says

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The lasting impact on the US economy will still come from the Fed even as the war in Ukraine intensifies, $95 billion wealth management chief says
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  • The Russia-Ukraine crisis will impact the US economy based on how it affects the Federal Reserve, said Rockefeller Capital Management's CEO.
  • Because of the war, the Fed could become less aggressive than investors previously anticipated, Greg Fleming told CNBC.
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While Russia intensifies its war on Ukraine, the impact on the US economy won't be as significant as the Federal Reserve's next move, according to Rockefeller Capital Management CEO Greg Fleming.

"The impact on the larger economic picture and markets really works from how [the Ukraine crisis] affects the Fed because the Fed, rates, and the economy are really where the greatest part of the market and economic action is," he told CNBC in a Monday interview.

Fleming, who's firm oversees $95 billion in client assets, noted that war in Ukraine, skyrocketing energy prices, and the downward pressure on Europe's economy will all impact the US central bank's actions.

The central bank could be slightly less aggressive than they had previously planned on rate hikes, he said, with a 25-basis-point move rather than 50. To Fleming, the pace of Fed tightening will dictate how the US economy fares moving forward during or after the war in Ukraine.

His comments echo those of top economist Mohamed El-Erian, who last week said Russia's invasion means the Fed wouldn't be able to hike interest rates as aggressively.

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Meanwhile, the geopolitical crisis has rattled global markets, and oil has jumped above $100 a barrel, adding more inflationary pressure to the economy.

"We're at a historic point for the Fed," Fleming said. "They have to break the back of the inflation expectations that are starting to get embedded in the economy."

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