The World Health Organization has released further information about the new variant of COVID-19, Omicron

The World Health Organization stated on Monday that the new Omicron COVID variant contained a high risk of transmission with the possibility of positive cases surging. While border closures by more countries across the world cast doubt over the economic recovery from the pandemic.

The world’s major airlines have acted swiftly to protect their hubs by curbing curbing passenger travel from Southern Africa where it’s understood the variant originated from. International carries are fearful that a spread of the variant may lead to further restrictions from other destinations – meaning not just immediately impacted regions.

The markets however have held strong, with airline stocks rebounding at the start of the week, following a decline on Friday – with investors panicking Omicron could see the global aviation sector shut down, again.

According to Reuters, U.S. Federal Reserve Chair Jerome Powell stated that the new variant muddies the outlook on inflation because prices could keep rising for longer than earlier thought.

The rise in COVID-19 cases and the emergence of the new variant “pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell said in testimony prepared for delivery on Tuesday to the U.S. Senate. Health-related concerns could “reduce people’s willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.”

BIDEN URGES NOT TO PANIC

U.S. President Joe Biden urged Americans not to panic, stating that the government was working with pharmaceutical companies like Pfizer and Moderna to make contingency plans if new vaccines were needed to fight the new strain.

The president confirmed that the country would not go back to lockdowns this winter – however did urge people to get vaccinated, get their booster shots and wear masks.