1851

Inflation issues have been a concern since the onset of the COVID-19 pandemic, and Federal Reserve Chairman Jerome Powell told the U.S. Senate Banking Committee that he foresees inflation persisting well into 2022 due to wage increases and staff shortages.&nbsp;<a href="https://www.restaurantbusinessonline.com/financing/fed-chairman-omicron-variant-could-push-inflation-pressures-well-next-year?utm_source=1851franchise.com&utm_medium=article&utm_campaign=new-omicron-variant-may-cause-inflation-troubles-to-extend-into-2022-2717376" target="_blank" rel="nofollow">Restaurant Business Online</a> said the announcement comes after previous predictions that inflation would slow down as the pandemic improves. However, the news of the new variant caused stocks to drop on Wall Street. The outlet reported that the drop on Wall Street had the biggest impact on restaurants, an industry that saw a median 2% drop.&nbsp;“It now appears that factors pushing inflation upward will linger well into next year,” Powell said in a statement. “In addition, with the rapid improvement in the labor market, slack is diminishing and wages are rising at a brisk pace.”Additionally, health officials are working to determine the effectiveness of the vaccines against the new variant. Dependent upon those results, financial forecasters expect that some employees may be wary of returning to work until more is known, thus posing a risk to rising inflation and prolonged economic recovery.“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. “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.”Such concerns about inflation and supply chain issues following the outbreak of the new omicron variant were shared by the Organisation for Economic Co-operation and Development’s Chief Economist Laurence Boone.&nbsp;<a href="https://www.ft.com/content/9e5dfa00-a051-485a-a8c2-fe6c3aeb11f5?utm_source=1851franchise.com&utm_medium=article&utm_campaign=new-omicron-variant-may-cause-inflation-troubles-to-extend-into-2022-2717376" target="_blank" rel="nofollow">The Financial Times</a> reported that global monetary policymakers are encouraging caution as inflation forecasts increase. Inflation forecasts from the G20 rose from 3.9% in September 2021 to 4.4% in December 2021.&nbsp;Related articles:<ul><li><a href="https://1851franchise.com/top-franchise-development-websites-81---100-2717369#featured">Supply Chain Crisis: Should Franchise Brands Turn to Hoarding?</a></li><li><a href="https://1851franchise.com/supply-chain-struggles-have-forced-franchises-to-adapt-holiday-strategies-2717245#featured">Supply Chain Struggles Have Forced Franchises To Adapt Holiday Strategies</a></li></ul>

New Omicron Variant May Cause Inflation Troubles to Extend into 2022

1851 Franchise

As world leaders and public health officials rush to get the omicron variant under control, financial experts expect the new mutation of the COVID-19 virus may push inflation issues well into the new year.

new-omicron-variant-may-cause-inflation-troubles-to-extend-into-2022

TruBlue Home Service Ally

TruBlue’s Home Maintenance Plans: Peace of Mind for Homeowners

trublues-home-maintenance-plans-peace-of-mind-for-homeowners

Caring Transitions

Caring Transitions Targets Peoria, Illinois, for Franchise Growth

caring-transitions-targets-peoria-illinois-for-franchise-growth

Caring Transitions Celebrates a Strong Start to 2025 With 19 New Franchise Sales and Momentum-Building Training Events

caring-transitions-celebrates-a-strong-start-to-2025-with-19-new-franchise-sales-and-momentum-building-training-events

Right at Home

Right at Home 30th Anniversary in Home Care with Right at Home Logo

Celebrating 30 Years of Excellence and Future Innovations in Home Care

celebrating-30-years-of-excellence-and-future-innovations-in-home-care

Why TruBlue is the Ideal Franchise for Multi-Unit Owners: Scalable Growth With a Purpose

why-trublue-is-the-ideal-franchise-for-multi-unit-owners-scalable-growth-with-a-purpose

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

New Omicron Variant May Cause Inflation Troubles to Extend into 2022

MORE STORIES LIKE THIS