Goldman Cuts U.S. GDP Forecast as Biden Economic Agenda in Doubt
Source: Bloomberg
Economics
Goldman Cuts U.S. GDP Forecast as Biden Economic Agenda in Doubt
By Michael Heath and Linus Chua
December 19, 2021, 8:48 PM EST Updated on December 19, 2021, 9:42 PM EST
-- Ongoing inflation concerns make it unlikely the bill will pass
-- Outcome would introduce some risk to March FOMC hike forecast
Goldman Sachs Group Inc. cut its forecast for U.S. economic growth after Senator Joe Manchin rejected the Biden administration's roughly $2 trillion tax-and-spend program, leaving Democrats with few options for reviving the economic agenda.
Goldman said in a research note Sunday that the likely failure of the Build Back Better legislation had prompted it to lower its real gross domestic product forecasts in 2022 to:
-- 2% in the first quarter from 3% previously
-- 3% in the second quarter versus. 3.5% before; and
-- 2.75% in the third quarter from 3% prior
"We recently put the probability of a modified version of the BBB legislation passing at slightly better than even but, in light of Manchin's comments, the odds have clearly declined and we will remove the assumption from our forecast," Goldman economists led by Jan Hatzius said.
Manchin's announcement caught the White House off guard, following weeks of negotiations between President Joe Biden and the West Virginia Democrat and just a day after the Senate adjourned for the holidays.
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Read more: https://www.bloomberg.com/news/articles/2021-12-20/goldman-cuts-u-s-gdp-forecast-after-manchin-won-t-back-bill
I'm cutting it close for LBN, but it barely makes the 12-hour limit.
David Weigel Retweeted
https://twitter.com/daveweigel
Nothing will fix the deficit more than slower economic growth
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so kids, work hard save your money, plan for retirement and get screwed by some West Virginia senator. America!
and their "paid" cohorts are in compliance with that as well.
GQP does not want a heathly America under a Democratic Administration .....
and their "paid" cohorts are in complioance with that as well.
GQP doesn't care about deaths, pain and suffering concerning the pandemic . .....
tney want that to happen because right now there is a Democratic Administration and congress, and their "paid" cohorts are in complaince with that as well.
FDR tenture to bring back America as a heathly ecomony was a hard journey wherein he had to fight with his own party tooth and nail and which did not take overnight. It was a long process but worth it. Manchin is no FDR Democrat.
To this date SS is under attack by the GQP, which hurts the disability and seniors (wherein many seniors vote against their own interest).
To be honest and just my opinion, BBB will be passed but reduced again. Will Democratic congresscriters keep their majority, yes.
