With a spurt in Omicron cases, the efforts of the governments and central banks are to ensure the economy is healthy. This year, there are growing concerns over the U.S. economy due to the expected higher inflation rate.
Hence many economists believe that the U.S. Federal Reserve (Fed) will tighten monetary policy faster than expected earlier. Since the start of pandemics, the Federal Reserve is expected to hike interest rates by March 2022.
The inflation rate reached the highest level since 1982, and some Fed officials signaled a potential interest rate hike in December last. According to a Reuters survey, interest rates are expected to increase three to four times this year to 0.75-1.00% levels.
With present rates standing at 0.0-0.25%, the economy faced...