Business & Investment

Goldman cuts U.S. growth forecast after Senator Joe Manchin rejects Biden’s $ 2 trillion spending plan

Goldman Sachs has lowered US growth forecasts again because Democratic Senator Joe Manchin claimed to not support President Joe Biden’s major $ 2 trillion spending bill.

“BBB [Build Back Better] The enactment already looks like a close call, and in light of Manchin’s comments, it is adjusting its forecasts to remove the assumption that BBB will be law, “said a team led by U.S. Chief Economist Jan Hatzius. ..

Manchin Told “Fox News Sunday” After five and a half months of talks within his party, he said, “I couldn’t vote to continue the bill.” can not. I have tried everything that is humanly possible. I can’t go there. His vote is very important in the 50-50 split Senate.

“We expected that the financial urge to 2022 would already be negative as a result of the decline in support under the COVID Relief Act enacted in 2020 and 2021, but if the BBB were not enacted, this financial urge would be. It will be a little more negative than expected, “Hazius said. And the team.

Specifically, they say the lack of other new spending that was expected to expire child tax credits is behind the blow to growth forecasts, which were reduced from 3% in the first quarter of 2022 to 3%. Say% from 3.5% in the second quarter to 3% in the third quarter to 2.75%.

“While the current form of BBB looks unlikely, it’s still quite possible that Congress will enact far fewer financial proposals to address manufacturing incentives and supply chain issues,” economists said. I am saying. “Although Congress may retroactively extend the expanded child tax credit, we believe that the chances of this happening are not uniform.”

Manchin’s rejection of the bill increased the loss of assets that were perceived as risky. World stocks fall Along with oil prices. In addition to concerns about the increased COVID transmission from Omicron variants, there are many political concerns.

Goldman economists have already reduced US growth forecasts for 2021 and 2022 During October Concerns about slow recovery in personal consumption.

Goldman cuts U.S. growth forecast after Senator Joe Manchin rejects Biden’s $ 2 trillion spending plan

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7804-9A38C73F6E9F%7D&siteid=rss&rss=1 Goldman cuts U.S. growth forecast after Senator Joe Manchin rejects Biden’s $ 2 trillion spending plan

Back to top button