Economists five risk factors heading into 2022

CNN– The U.S. economy is entering the new year with serious momentum, with average weekly jobless claims near the lowest level in 52 years. The unemployment rate was down to 4.2% in November, but economists say five risk factors could quickly change all that.

Experts say it starts with COVID-19, already canceling flights around the country.

Then there’s the risk of inflation staying hot. While some economists predict inflation will cool off later in the year, prices for food, gas and housing are still high.

The third risk is supply chains staying scrambled. The delta variant impacted supply chains in several ways including getting workers sick. While it’s still early, economists predict the same could happen with omicron.

Then there’s the potential for a Fed policy mistake. The Federal Reserve is ending its emergency support for the economy, and plans to raise interest rates. After providing nearly $6 trillion the past two years, fiscal stimulus and spending are expected to slow dramatically in 2022.

Finally comes the unexpected. The risk of a surprise event, like a natural disaster, that could impact the economy.