Russia Is Just Not That Important: Ethan Harris

The transcript discusses the limited economic impact of Russia on the US, highlighting that Russian trade is only 1% of US trade. It notes the current market volatility, driven by oil prices, and the lack of liquidity as the year ends. The potential impact of a global crisis on the Fed's interest rate decisions is considered, with the Fed being cautious due to rapid market changes. Oil prices are identified as a leading market indicator, and the Fed's cautious approach is emphasized, with Janet Yellen's press conferences being crucial for understanding the Fed's stance.

What potential impacts could a collapse or default in Russia have on the Federal Reserve's actions?

According to the text, what is the most important factor currently driving the markets?