(WWLP) – China is taking drastic measures to halt the spread of COVID-19, which could potentially slow its economy.
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Following the omicron surge in the world’s Asia-Pacific region, the Chinese government implements a zero-COVID policy. Heavy restrictions aimed at eliminating both deaths and cases related to COVID-19.
The situation in China could affect supply and demand here in the States. The US relies on China for a variety of products, if the country’s production slows, supply will be unable to meet consumer needs.
“If that happens in China, where there’s a slowdown and we’re not getting the products that we’re expecting from China, we’re going to see a slowdown in America and we’re going to see higher inflation,” he told financial adviser Mark Teed of Raymond James Financial.
Currently, inflation in the US has risen to over eight and a half percent. To combat these rising numbers, it’s up to the Federal Reserve to raise interest rates.
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