Omicron to Slow the Global Economy, Beating the U.S. Hard

The Omicron’s rising infection rates led to a global economic slowdown, hitting the U.S. harder than expected.

According to data released by the World Health Organization on Thursday morning, the number of new cases of Covid-19 increased by more than 9.5 million. It reported that the death toll due to coronavirus hit 3.5 million.

The pullback was particularly apparent in the U.S., where the services and manufacturing sectors documented slower growth. According to data company IHS Markit surveys, conducted in the first weeks of January and released on Monday.

The global economy is going through a significant slowdown. The U.S. Federal Reserve’s decision to raise interest rates starts a new cycle of economic expansion. In this cycle, the U.S. economy might grow faster than the rest of the world. It might make America the first major economy to grow out of the slump.

Fed’s decisions in the time of Omicron

The Federal Reserve has lifted interest rates by 0.25% to a range of 0.5% to 0.75%. This situation harms the worldwide economy and the global stock markets.

Due to the Federal Reserve’s decision to raise interest rates, many economies worldwide will experience slower growth. This slowdown will create a ripple effect throughout the economy, causing the financial markets to dive into the open on Thursday.

The Fed’s decision to raise interest rates is the first step in an economic policy cycle that the European Union (EU) market experts call “the Omicron.” The Fed’s decision to raise interest rates will lead to a slowdown in the growth of the U.S. economy. If the interest rates keep rising, the U.S. economy can slow down even further.

As European stocks set to plunge and investors react to the Fed decision, the European Central Bank might cut interest rates to boost the economy.