According to Yellen, there is still great uncertainty about the economic impact of omikron, the variant that first came to light in southern Africa.
Disruption of logistics chains
“Hopefully it’s not something that will significantly slow economic growth. There’s a lot of uncertainty and we’re still evaluating this.”
The further disruptions in the logistics chains caused by omikron may further fuel inflation, Yellen said. As a result, companies have to deal with even higher costs, which are then passed on to customers. But she also believes that economic growth is slowing down because demand is under pressure, which could help lower inflation.