Economic activity in November was relatively strong, with gains in the manufacturing and service sector, while global supply chain issues, raw material shortages and rising inflation weighed on expectations. With the strengthening economy and high inflation, the U.S. Federal Reserve Board (“Fed”) announced that it would begin reducing its asset purchases at its November meeting. However, a new COVID-19variant discovered late in the month has injected a new level of uncertainty into the economic outlook.
Governments reacted to the new Omicron variant by instituting new travel restrictions and halting travel to a number of countries…
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