Skip to content

Jerome Powell Says Omicron Adds Economic Risks, Inflation Uncertainty

  • Senate testimony doesn’t discuss tapering of bond purchases
  • Fed chair has been picked for second term by President Biden
Video player cover image

WATCH: Omicron Risks Higher Inflation, Tighter Supplies: Bianco

Source: Bloomberg

Updated on

Federal Reserve Chair Jerome Powell, in his first public remarks on the omicron variant of the coronavirus, said it poses risks to both sides of the central bank’s mandate to achieve stable prices and maximum employment.

“The recent rise in Covid-19 cases and the emergence of the omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell said in prepared testimony released Monday, a day ahead of his appearance before the Senate Banking Committee. “Greater concerns about the virus could reduce people’s willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.”