The Omicron variant turns out to be all things to all market participants. Buy the vaccine makers (because new demand) but buy Big-Tech (because storm in a teacup); Sell oil (because fears of lockdown/demand), but sell the long-end of the yield curve (because 'mild, moderate' symptoms and so 'inflation/growth').
But for one market participant in particular, it's a great excuse (especially after his re-nomination) as Fed Chair Powell's prepared remarks ahead of The Coronavirus and CARES Act hearing before the Committee on Banking, Housing, and Urban Affairs, offered some insight into his next actions (after a token shift to more hawkish positions by some Fed speakers).
Here is the key paragraph:
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.
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.
To read more visit Zero Hedge.
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