Goldman Sachs boosts US GDP forecast to 6.8% in 2021 and now expects $1.5 trillion in COVID-19 stimulus
Summary List Placement Goldman Sachs raised its forecast for 2021 US gross-domestic-product growth to 6.8% from 6.6%. Economists now expect a coronavirus relief package worth $1.5 trillion, up from $1.1 trillion. The bank moved up its forecast for the Fed's first interest-rate hike to the first half of 2024. Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Goldman Sachs upgraded its outlook for the US economy in 2021 on Tuesday and says it now expects a larger coronavirus relief package. 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 President Joe Biden's proposed $1.9 trillion relief plan. The next step, expected to be completed this week, requires committees to draft and vote on legislation such as the details, size, and timing of particular provisions. Read more: A wealth-management research chief shares 6 stock-market sectors to buy as the country reopens and the economy experiences its 'best single year of GDP growth since 2000' Goldman 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. Read more: Credit Suisse says to buy these 16 'highest-conviction' stock picks that are set to outperform despite the market's contrarian viewSEE ALSO: Here's what 6 crypto experts said about Tesla's $1.5 billion bitcoin investment Join the conversation about this story » NOW WATCH: Here's what it's like to travel during the coronavirus outbreak
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Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end
Summary List PlacementA week into 2021, all eyes on Wall Street are on the growth prospects...Summary List PlacementA week into 2021, all eyes on Wall Street are on the growth prospects of the year ahead. Will the economic recovery and reopening proceed as predicted? Will the much-anticipated reflation trade pan out as expected? A lot of it is riding on the smooth distribution of COVID-19 vaccines and whether it would deliver the projected economic impact, according to Goldman Sachs. ...
Goldman Sachs is growing more bullish on the US economy and has raised its GDP forecast after Democrats took the Senate
Summary List PlacementGoldman Sachs has upgraded its outlook for the US economy this year, after the...Summary List PlacementGoldman Sachs has upgraded its outlook for the US economy this year, after the Democrats won control of the Senate, which increases the likelihood of more fiscal stimulus early on to combat the fallout from the coronavirus pandemic. In a tight run-off election on Wednesday, Raphael Warnock and Jon Ossoff defeated their Republican rivals, handing control of the Senate to the Democrats...
Summary List Placement The promise of mass vaccinations to quell the COVID-19 pandemic will help spur...Summary List Placement The promise of mass vaccinations to quell the COVID-19 pandemic will help spur economic growth in the fourth quarter and beyond, according to Goldman Sachs. In a note on Tuesday, Goldman Sachs' Chief Economist Jan Hatzius increased its fourth quarter GDP growth estimate to 5% from 3.2%. "We seem to be finding that the impact of a given virus outbreak on...