The latest coronavirus variant, Omikron, and signs that the US Federal Reserve wants to speed up correction, create uncertainty. And the market does not appreciate it.
Friday, at the end of the market day, James Bullard, president of the St. Louis Fed, said that the Fed should accelerate its monthly bond buyout program cancellation. Bullard pointed to the strong recovery and rising inflation.
US gross domestic product “has already passed the pre-pandemic peak and is expected to rise significantly” and “many labour market indicators point to very tight labour market conditions”, while “US inflation surprised significantly at the top in 2021”, said Bullard, who will again have voting rights on the Fed’s Policy Committee in 2022.
Most attention will go to the Fed meeting on 14 and 15 December, but the market will have to be patient for a week. Next week there will be mainly updates of already published data, which means that the macroeconomic calendar is likely to have a limited impact on share prices.