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Omicron surging; Fed in hawkish mood

The surge in Omicron infections has quickly developed into a full-blown tsunami, with the seven-day national average now close to 600,000 – three times higher than the previous peak last winter. The increase in absenteeism caused by the Omicron wave will only compound the acute labour shortages that developed last year, putting even more upward pressure on wages and prices.

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