Omicron pummels what looked set to be a lucrative Christmas as markets wobble

Omicron pummels what looked set to be a lucrative Christmas as markets wobble

The climate has been further impacted after comments by the chairman of the Federal Reserve, Jerome Powell, who said the emergence of the new variant would worsen uncertainty around the economic recovery and inflation.

In response to a question, Mr Powell also said it was time to retire the term “transitory” which he has used to describe recent high rates of inflation.

The Federal Reserve should consider tapering bond purchases more quickly, the first step towards raising interest rates, he added.

Speaking on Mr Powell’s hawkishness, Mr Vessey said: “Amid the Omicron-induced market mayhem of late, Fed Chair Jerome Powell fuelled more volatility with his hawkish comments about inflation and the need to wrap up tapering bond purchases a few months sooner. GBP/USD lost a cent in about half an hour and brushed fresh 11-month lows.”

Published at Sun, 05 Dec 2021 12:01:00 +0000