Trump administration's capture of Venezuela's leader Nicolas Maduro poses risk to U.S. economy? Minneapolis Fed president sends warning
Stock Markets are largely shrugging off events in Venezuela, after a U.S. raid led to the capture of President Nicolas Maduro.
By Global Desk |
The main risk to the U.S. economy from the Trump administration's capture of Venezuela's leader Nicolas Maduro over the weekend would stem from rising oil prices, Minneapolis Federal Reserve President Neel Kashkari said on Monday, but that does not appear to be underway so far.
The risk is "mostly through oil prices," Kashkari said in an interview on CNBC. "When Russia invaded Ukraine, it sent a commodity shockwave all around the world. It didn't happen with Hamas attacking Israel. It has not happened now with the U.S. and Venezuela. But that's the mechanism that ... would directly affect the US."
"I don't see it so far," he added.
In the biggest intervention in Latin America since the 1989 invasion of Panama, U.S. Special Forces over the weekend captured Venezuela's long-time leader, Nicolas Maduro, and brought him to New York to face drug trafficking charges.
Commodity and financial asset markets so far have shown only a modest response to the surprise development. U.S. light sweet crude oil prices on Monday were about 1 per cent higher but were not far above five-year lows touched in December.
The U.S. dollar began the first full trading week of 2026 by hitting a near-four-week high on Monday against a range of currencies after a weak December, with traders focused on this week's raft of key economic data.
Markets are largely shrugging off events in Venezuela, after a U.S. raid led to the capture of President Nicolas Maduro.
President Donald Trump told reporters on Sunday he could order another strike if Venezuela did not cooperate with U.S. efforts to open up its oil industry and stop drug trafficking. He also threatened military action in Colombia and Mexico.
The U.S. monthly employment report, due on Friday, will be key in shaping expectations for the outlook for monetary policy - an arguably weightier factor for the dollar.
The dollar was up 0.16 per cent against the Swiss franc at 0.794 francs. The euro was down 0.23 per cent at $1.169475 against the dollar.
Q1. Who is Venezuela President?
A1. Venezuela President is Nicolas Maduro.
Q2. Who is President of U.S. President?
A2. President of U.S. President is Donald Trump.
The risk is "mostly through oil prices," Kashkari said in an interview on CNBC. "When Russia invaded Ukraine, it sent a commodity shockwave all around the world. It didn't happen with Hamas attacking Israel. It has not happened now with the U.S. and Venezuela. But that's the mechanism that ... would directly affect the US."
"I don't see it so far," he added.
In the biggest intervention in Latin America since the 1989 invasion of Panama, U.S. Special Forces over the weekend captured Venezuela's long-time leader, Nicolas Maduro, and brought him to New York to face drug trafficking charges.
Commodity and financial asset markets so far have shown only a modest response to the surprise development. U.S. light sweet crude oil prices on Monday were about 1 per cent higher but were not far above five-year lows touched in December.
The U.S. dollar began the first full trading week of 2026 by hitting a near-four-week high on Monday against a range of currencies after a weak December, with traders focused on this week's raft of key economic data.
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Markets are largely shrugging off events in Venezuela, after a U.S. raid led to the capture of President Nicolas Maduro.
President Donald Trump told reporters on Sunday he could order another strike if Venezuela did not cooperate with U.S. efforts to open up its oil industry and stop drug trafficking. He also threatened military action in Colombia and Mexico.
The U.S. monthly employment report, due on Friday, will be key in shaping expectations for the outlook for monetary policy - an arguably weightier factor for the dollar.
The dollar was up 0.16 per cent against the Swiss franc at 0.794 francs. The euro was down 0.23 per cent at $1.169475 against the dollar.
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FAQs
Q1. Who is Venezuela President?
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A1. Venezuela President is Nicolas Maduro.
Q2. Who is President of U.S. President?
A2. President of U.S. President is Donald Trump.
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