(ReliableNews.org) – As 2021 quickly draws to a close, it is time to look forward and consider the possibilities 2022 has to offer. Sadly, it seems like inflation could be here to stay throughout the new year.
The most recent Employment Situation Summary from the US Bureau of Labor Statistics fell far short of estimates. Dow Jones expected to see a growth of about 573,000 jobs, but nonfarm employment only increased by 210,000. With the lack of an adequate workforce/jobs, demand continues to outpace supplies leading to increased inflation.
Making matters worse, global supply-side shortages further undermine America’s economic rebound and contribute to the rise in costs for products and materials.
The Biden administration’s inability to address the rising rate of infections due to the Omicron variant is also doing its part to decrease the number of available workers while increasing the nation’s crippling inflation rate.
— Forbes (@Forbes) December 3, 2021
Federal Reserve chair Jerome Powell has been nothing if inconsistent in his predictions. He recently claimed millions of workers should return to the job next year as COVID-19 wanes. But as noted above, the rise of the Omicron variant puts the reality in doubt.
Saxo Bank recently predicted under continued labor uncertainty, inflation could rise above 15% by the end of 2022, perhaps sooner in the year. The possible eventuality could spark equity and credit market volatility, causing increased inflationary stressors.
For the moment, the outlook for inflation in 2022 looks grim. However, as former President Donald Trump has already demonstrated, the nation’s economy can turn on a dime. Too bad he’s not in the White House at the moment.
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