Omicron Could Disrupt US Economic Recovery, Inflation No Longer ‘Transitory’: Yellen

The Epoch Times Header

The new coronavirus variant Omicron may affect inflation rates and worsen existing supply chain disruptions leading to slower economic growth claimed U.S. Treasury Secretary Janet Yellen on Thursday at the Reuters Next conference.

As the economy keeps recovering from pandemic-related restrictions, and life “returning towards normal” with “increased vaccination and booster shots,” Yellen said that the new variant “could be with us for quite some time,” leading to behavioral patterns that could contribute to inflation.

The Delta variant caused a slowdown in the American economy earlier in the year. And, given how highly transmissible the new variant appears, there is a great deal of uncertainty in markets and among world governments.

Currently, Omicron, which was first identified in southern Africa, has now spread to around 24 nations around the world, including the United States, Canada, and countries in Europe and Asia.

As of now, symptoms are reported to be mild in the cases found in South Africa as well as the United States, but scientists are asking for more time to provide definite conclusions on the latest variant.

restricted while passengers traveling from these locations are subject to screening and quarantine measures.

“Hopefully it’s not something that’s going to slow economic growth significantly,” Yellen said. “There’s a lot of uncertainty, but it could cause significant problems. We’re still evaluating that.”

Pandemic-related lockdowns in China and sudden increase in consumer demand tightened worldwide distribution networks contributing to supply chain disruptions, which could be worsened by Omicron. However, a decrease in demand could ease some of the stresses on the supply chain leading to lower inflation rates, said Yellen.

“I’m ready to retire the word transitory. I can agree that that hasn’t been an apt description of what we’re dealing with,” Yellen told the virtual global conference regarding the description of the current inflation, which is the highest seen in the United States for over 30 years.

By Naveen Athrappully

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Viewers like you

There is no constitutional authority for any spending on public broadcasting – period. Any questions: See Article 1, Section 8 of the U.S. Constitution.

Beyond the Trump-Musk fallout?

We are witnessing an unprecedented, unhinged Democrat effort to use lawfare, big Democrat donors, street theater, congressional disruptions, potty-mouth videos, the administrative state, the legacy media, and discredited pollsters to stop the Trump agenda.

Trans-wormal

No worm ever said "I am anthropomorphizing, I am a butterfly" to a toad or flock of geese and expected acknowledgement and support.

In Greenland’s Icy Capital, Past Troubles Haunt Hopes for the Future

As geopolitical realities and ongoing economic growth raise the stakes, U.S. interest in Greenland and the dream of independence may change things in a big way.

How a Chinese Government Statistician Was Forced to Report Fake Data

Chinese local govt employee produced a non-authorized report on bees and was visited by police and threatened with being sent to a mental hospital.

News

Supreme Court Sides With DOGE in Social Security, Records Cases

The Supreme Court handed DOGE two big wins late on June 6 in its effort to reduce the size of the federal government.

Kilmar Abrego Garcia Returns to US to Face Criminal Charges

Kilmar Abrego Garcia, a citizen of El Salvador, is on his way back to the US, where he will face criminal charges for allegedly smuggling illegal immigrants.

White House Adviser Gives Update on DOGE’s Future Amid Musk–Trump Spat

A top White House adviser said DOGE’s work will likely continue amid a spat between its former chief, Elon Musk, and President Donald Trump.

Trump Administration Asks Supreme Court to Allow Dismantling of Education Department

Trump admin asked Supreme Court to allow it to resume dismantling U.S. Dept of Education, following a lower court’s previous order halting process.

FTC Warns of Rising Student Loan Scams, Says Fraudsters Took Millions From Borrowers

FTC is warning borrowers to steer clear of student loan debt-relief scams, after shutting down group of companies that allegedly charged millions in illegal fees and left customers worse off.

Walmart’s Drone Delivery Coming to 5 More US Cities

Walmart is set to launch its drone delivery service in five more U.S. cities: Atlanta, Charlotte, Houston, Orlando, and Tampa, the company.

Court Orders Trump Administration to Restore AmeriCorps Funding to States

Federal court ordered Trump admin to restore AmeriCorps funding to states. The ruling comes as part of a lawsuit filed by 24 states and DC.

Tax Deductions You Can Take Without Itemizing

It’s not always beneficial to itemize. With IRS’s current standard deduction for 2025 most Americans who can’t itemize go with standard deduction.
spot_img

Related Articles