United States: Omicron variant could weigh on economy and inflation

US: Omicron variant could weigh on economy and 'inflation

MISE & Agrave; DAY

WASHINGTON | US Central Bank President Jerome Powell has estimated that “the recent increase in COVID-19 cases and the emergence of the Omicron variant pose downside risks to jobs and economic activity and increase the uncertainty about inflation ”. & nbsp;

Indeed, “greater concerns about the virus could reduce people's willingness to work in person,” according to Jerome Powell's speech to the Senate Banking Committee on Tuesday morning, which was released on Monday.

This “could slow labor market progress and intensify supply chain disruptions,” he added.

The new Omicron variant of COVID-19, which has prompted many countries to take new travel restriction measures, is raising fears for the global economic recovery.

Fed chairman, que Joe Biden has just reappointed for a second term, also found “difficult to predict the persistence and effects of supply constraints, but it now appears that the factors pushing inflation up will largely persist next year” .

However, he pointed out that “most forecasters, including at the Fed, continue to expect a significant drop in inflation over the next year, as supply and supply imbalances. demand will subside. ”

Inflation accelerated in October in the United States, and stood at 5% year-on-year, its highest level since 1990, according to the PCE index from the Department of Commerce.

Jerome Powell assured last Monday during his speech to the White House after the announcement of his appointment that the Fed would act to prevent inflation from ” not root ”.

Joe Biden received heavyweights from distribution in the United States on Monday, such as giant Walmart. They assured that the situation was improving on the front of the supply problems observed since the summer in the United States.

Jerome Powell and Treasury Secretary Janet Yellen will be heard jointly on Tuesday and Wednesday before the Banking Committee of the Senate and that of Financial Services of the House of Representatives as part of the follow-up to the stimulus plans.

The boss of the Fed will also be heard, concerning his appointment, by the Senate which must confirm it in its position.

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