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Goldman Sachs cuts US growth forecast in the face of objections from Joe Manchin’s Build Back Better

Senator Joe Manchin (DW.Va.) make waves on sunday when he announced about Fox News Sunday that he will not vote on his party’s Reconstruct Better domestic spending law. He sent an aide to let the White House leadership and Congress know less than half an hour before going on air to drop his bomb, and he “refuses to take calls from White House staff” when they called to “take him away,” a senior White House official told PoliticoRyan Lizza.

Republican censors voted for Manchin bipartisan infrastructure deal helped negotiate was excited with the news, but the Democrats and the White House did not. Senate Finance Committee Chairman Ron Wyden (D-Ore.) quickly release a new framework for a more narrowly focused Build Back Better plan, but the White House seems to think Manchin killed the bill, released a strong statement accused him of backing out his written promise to President Biden.

Goldman Sachs decided Build Back Better was probably dead too and cut its US economic growth forecast accordingly.

Jan Hatzius and other Goldman Sachs economists say: “Failure to beat the BBB has negative growth implications.” said in a research report on Sunday. Thanks to the “clear fall” of the law, the US will grow 2% in the first quarter of 2022, down from 3%, with more modest growth cuts in subsequent quarters. The most important question for the short-term outlook is whether Democrats will extend the soon-to-be-expired extended child tax credit, as the BBB will do, the economists wrote.

White House Press Secretary Jen Psaki also hit Manchin on the child tax credit. If he doesn’t “reverse his position again, to honor his previous commitments and be true to his word,” she said in her statement on Sunday, “maybe Senator Manchin can explain to millions of children out of poverty, partly because of the Child Tax Credit, why he wants to end a program that is helping to achieve this milestone – we can’t. ”

Psaki also asked Manchin to “explain to families who pay $1,000 a month for insulin why they need to keep paying it, instead of $35 for that important drug“and tell” the nearly two million women who will get the affordable day care they need to get back to work why he opposes the plan to seek help they need. “

https://theweek.com/joe-manchin/1008237/goldman-sachs-cuts-us-growth-forecast-on-joe-manchins-build-back-better Goldman Sachs cuts US growth forecast in the face of objections from Joe Manchin’s Build Back Better

DevanCole

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