Federal Reserve Chairman Jerome Powell is set to tell Congress on Tuesday that the omicron variant could threaten the U.S. labor market and cloud the inflation forecast.

"The recent rise in COVID-19 cases and the emergence of the [omicron] variant pose downside risks to employment and economic activity and increased uncertainty for inflation," Powell wrote in prepared remarks that he will deliver before the Senate Banking Committee on Tuesday. 

"Greater concerns about the virus could reduce people's willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions."

Stocks suffered the worst drop of the year on Friday after the World Health Organization named omicron a "variant of concern."... Read More: FOX Business