Goldman Sachs boosts US GDP forecast to 6.8% in 2021 and now expects $1.5 trillion in COVID-19 stimulus
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Goldman Sachs upgraded its outlook for the US economy in 2021 on Tuesday and says it now expects a larger
Economists at the bank raised their forecast for 2021 US gross-domestic-product growth to 6.8% from 6.6% and to 4.5% from 4.3% in 2022.
Last week, the Senate passed a budget resolution that paves the way for approval of PresidentGoldman Sachs doesn't expect the size of the bill to be finalized for another few weeks. But economists raised their COVID-19 relief-package estimate to $1.5 trillion, up from its previous estimate of $1.1 trillion.
The bank brought forward its forecast for the Federal Reserve's first interest-rate hike to the first half of 2024, from the second half of that year, on the basis of its upgraded GDP forecast, a larger-than-expected decline in the unemployment rate in January, and signs of a firmer inflation outlook."We expect the FOMC to start tapering its asset purchases in early 2022," the economists Alec Phillips, David Mericle, and Blake Taylor wrote.
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