- Analytics
- News and Tools
- Market News
- Fed’s Mester: Omicron threatens to stoke US inflation
Fed’s Mester: Omicron threatens to stoke US inflation
In an interview with the Financial Times (FT), Cleveland Fed President Loretta Mester delivers hawkish comments on likely rates next year while cautioning about the risks from the Omicron covid variant.
Key quotes
Omicron threatens to stoke US inflation.
Variant could exacerbate supply chain crunch and worker shortages.
The fear of the virus is still one of the factors holding people back from re-entering the labor force.
Have to entertain the risk that those persistently high numbers of inflation could become more embedded.
The economy is better at dealing with these variants.
The demand side effects have been lessened, but we’ve seen these supply-side effects, which are related to the virus.
Would support at least one rate increase next year, and that two might be “appropriate”.
Market reaction
These above comments had little to no impact on the US dollar, as it trades flat at 96.16 against its major rivals, at the time of writing. Markets await the US NFP for a fresh trading direction.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
