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Omicron fear and inflation angst panic US markets

NEW YORK – The Fed, the US Senate and the Omicron strain of Covid-19 were too much for the S&P 500 Index, which fell by nearly 4% on Monday at mid-session from last Thursday’s intraday peak.

The Fed is tapering purchases of Treasuries after a US$5 trillion post-Covid binge, the Senate balked at Biden’s $1.75 trillion fiscal stimulus and Omicron threatens yet another wave of lockdowns. 

These three ill omens are facets of the same problem – the government pays people more money to sit at home than they ever earned at work, and the central bank prints money to finance it.



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