(Bloomberg) — Goldman Sachs Group Inc. lowered its forecast for U.S. economic growth after Senator Joe Manchin said Sunday he won’t support the $2 trillion tax-and-spending plan that’s the heart of President Joe Biden’s economic agenda.
The bank’s economic research team cut next year’s real GDP forecast to:
- 2% from 3% in first quarter
- 3% from 3.5% in second quarter
- 2.75% from 3% in third quarter
Manchin’s comments effectively killed Democrats’ plans to pass the legislation as they begin an election year.
Build Back Better bill’s “enactment had already looked like a close call and in light of Manchin’s comments we are adjusting our forecast to remove the assumption that BBB will become law,” Goldman’s economists said in a report Sunday. “A failure to pass BBB has negative growth implications.”
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