Omicron gives economists the advantage of sharp and short growth
Bloomberg's does not offer much of an inkling.
Due to the spread of the omicron Covid variant, economists predict GDP growth of 3% for the first quarter.
The silver lining is that economists do not believe that damage will last long. For 2022 as a whole, the median forecast calls for average growth of 3.8 percent. That's down only from 3.9 percent the previous survey.
Anna Wong, the head US economist for Bloomberg, said: We expect the impact of the omicron on GDP to be short and sharp.
And the rebound should be just as rapid, according to a spokesman for our daily GDP tracker. Forecasts suggest activity to trough in early February, and a rebound would be in full swing by the FOMC meeting in March.
Many economists and investors believe the Federal Reserve will begin raising interest rates at the meeting to mitigate inflation. Consumer prices rose 7% last year, but consumers are still suffering.
Bloomberg's inflation projection for each quarter of this year has risen to 5.2%, up from 4.8 percent last month.
If the amount is 7% higher, it's still quite high given 2% of the Fed's target before the pandemic last year.
Many economists expect the Fed to raise rates four times this year, according to Goldman Sachs' Chief Economist.
In December, the number of workers surveyed fell to 3.9 percent, from 4.8 percent in November.