The last two years have been extraordinary in many ways. The pandemic headlines this story, but there are many parts to this tale. We had an economy stop on a dime for the first time in history. So many adjustments were made, from millions working virtually, to wearing masks in public places.

The vaccines were supposed to lead us to the other side of the pandemic, but two obstacles arose. One was vaccine reluctance, and the other was variants of the virus. While these things have slowed the economic recovery, they have not stopped the recovery. This recovery was buoyed by record low interest rates and a red-hot housing market. Still, another significant part of the story concerns inflation.

When there is too much cash chasing too few goods, the price of those goods rise. The rise in real estate values and stock market have provided plenty of fuel for inflation which raged in 2021 amid supply shortages. Thus, the Federal Reserve has stepped in and made a statement that they are poised to remove their stimulus from the economy, while also raising interest rates in 2022. If the Omicron variant could be a threat to the recovery, could the Fed’s actions also provide additional obstacles? The Fed will be performing a highwire balancing act in 2022, fighting inflation while keeping an eye on the real enemy — which is highly contagious.

Dave Hershman is the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School. Want to send this commentary and other news in a personalized format to your sphere database or on social media?  Sign up for a free trial at