Jerome Powell: It threatens the US economy

Federal Reserve Chairman Jerome Powell believes that the omicron variant and the increase in corona falls threaten the US economy.

CNBC reports that the Fed chairman Jerome Powell is concerned about the new omicron virus variant and the increase in corona falls, and that this poses a threat to the US economy.

“The recent rise in covid-19 cases and the emergence of the omikron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell said in a statement he intends to make to U.S. Senate lawmakers on Tuesday. , according to CNBC.

Fears worse disruptions in the supply chain

“Greater concern about the virus could reduce people’s willingness to work in person, which would slow down labor market developments and intensify disruptions in the supply chain,” Powell added.

Together with the Minister of Finance Janet Yellen Jerome Powell, as governor of the central bank, is obliged to report quarterly on, among other things, the Fed’s support program in the pandemic.

As Dagens PS has previously reported, the Fed has decided to phase out its pandemic stimuli. At the same time, the United States is currently struggling with rampant inflation and serious supply chain disruptions in the wake of the shipping crisis.

Also read: Fed officials open for interest rate hike [Dagens PS]

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