Inflation, Fed Policy, and Omicron Will Slow Economic Growth in 2022

The Conference Board forecasts that the US economy will grow by 6.5 percent (annual rate) in Q4 2021 and 5.6 percent for the full year.  However, a new wave of COVID-19 (and a new variant) will slow economic growth over the winter period - resulting slower growth in Q1 2022. High inflation is enduring and will not disappear in 2022. Consumer’s income and spending are already being impacted. Additionally, the Federal Reserve is becoming more hawkish and will implement tighter monetary policy over the coming year.