As a representative of Treasury Kennedy's remit is fiscal policy.
- biggest economic impact of Omicron was staff absenteeism
- Treasury did not foresee the impact on staffing and on supply chains
- negative impact of Omicron "relatively muted"
- not expecting it to have a large negative impact on employment (but on hours worked)
- the large fiscal pulse used to support the economy through COVID-19 is coming to an end
- fiscal policy support has to be cut back, which will allow monetary policy to get back to more normal
- premature tightening could prevent hitting full employment
AUD doesn't care:
