Economics

Goldman Cuts U.S. GDP Forecast as Biden Economic Agenda in Doubt

  • Ongoing inflation concerns make it unlikely the bill will pass
  • Outcome would introduce some risk to March FOMC hike forecast
WATCH: Senator Joe Manchin says he won’t support President Joe Biden’s $2 trillion economic agenda as it stands.Source: Bloomberg
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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: