Fed's Bostic Says Saudi Arabia Situation Poses Geopolitical Risk

(Bloomberg) -- Potential sanctions over the disappearance of a Saudi Arabian journalist after entering his country’s consulate in Istanbul could have ramifications for the oil market and U.S. economy, a U.S. central banker warned.

“The geopolitical issues are significant,” said Federal Reserve Bank of Atlanta President Raphael Bostic on Friday in Macon, Georgia. “You have the Saudi Arabian situation and the question about whether what happened to that journalist is going to lead to sanctions and could impact oil markets in a significant way.’’

President Donald Trump said Thursday it “certainly looks” like missing journalist Jamal Khashoggi is dead and warned of “very severe” consequences for the killing.

Trump told reporters Thursday that his administration is waiting for the results of different investigations as it decides how to respond amid reports that the U.S.-based journalist was ambushed inside the Saudi consulate in Istanbul, then tortured, killed and dismembered.

Bostic said it’s important for policy makers to closely track the developing situation.

“One thing we will do is make sure we monitor the economy and these developments as closely and in as timely a fashion as possible so we can start to understand the implications of these things as they occur,” he said.

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