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

Lawn Doctor

Happinest-Lawn-Doctor-Franchisee-Ralph-Valle-Profile-Jacksonville-FL-June-2025

From Near-Quit to 7 Figures: Success With Lawn Doctor in Jacksonville, Florida

lawn-doctor-franchise-success-jacksonville

Atomic Wings

Atomic Wings Debuts in Metro East With Fairview Heights Grand Opening

atomic-wings-debuts-in-metro-east-with-fairview-heights-grand-opening

Pet Wants

Pet Wants Shares Expert Tips on Cleaning Pet Gear Safely in the Dishwasher

pet-wants-shares-expert-tips-on-cleaning-pet-gear-safely-in-the-dishwasher

Griswold

Griswold in Andover, Minnesota, Connects Students and Seniors Through Pen Pal Program

griswold-in-andover-minnesota-connects-students-and-seniors-through-pen-pal-program

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service franchisee Max Moarefdoust

Corporate Employee Turned Owner Illustrates the Power of the HomeTeam Model

max-moarefdoust-hometeam-success

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 Development Website Builder

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

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

New Omicron Variant May Cause Inflation Troubles to Extend into 2022

MORE STORIES LIKE THIS