Although the U.S. economy experienced a faster than anticipated growth rate to the end of 2021, the acceleration was likely to have slowed down as the spread of the omicron put an impediment on employment and further hindered global supply chains.

Gross domestic product, the sum of all goods and services produced during the October-through-December period, increased at a 6.9% annualized pace, the Commerce Department reported Thursday. Dow Jones’ economists had expected an increase of 5.5%, according to their survey.

After the slowdown in summer output, the report showed an economy that was stable overall. The economic imbalances were caused by supply chain problems linked to pandemic and robust demand fueled by unprecedented stimuli from Congress, the Federal Reserve and Congress.

As supply could not keep up with demand, inflation rose in 2021. This was especially true in the second half.

As the U.S. enters 2022, it is uncertain how the country will fare. Fed Chairman Jerome Powell warned Wednesday that while growth may slow in the beginning of the year, Powell still considers the economy strong overall.

The Fed also telegraphed that a March rate increase would be made, which was the first such hike since 2018. The central bankers expect that they will end monthly asset purchases in the same month, and begin unwinding bond holdings soon after.

These tightening measures are in response to rising inflation, which is at an all-time high of nearly 40% in 40 years. Friday’s data on the Fed’s preferred inflation gauge (the personal consumption expenditures price index) will be available.

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