Passage of President Joe Biden s stimulus plan brings the total pandemic-relief tab to $5 trillion.
The relief packages handily surpass past measures and mark a turning point for how Congress spends.
Americans largely back the new approach, with 66% supporting Biden s measure in a recent poll.
The amount of fiscal stimulus used to keep the US economy afloat over the past year blows past packages out of the water. But Americans don t seem all that worried. In fact, one could say they re getting used to it.
House Democrats passed President Joe Biden s $1.9 trillion relief package on Wednesday, sending the bill to the Resolute Desk for a final signature. The plan s approval brings the sum of federal aid passed during the pandemic to roughly $5 trillion, a level practically unimaginable just 10 years ago.
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Another relief package will extend strong growth through 2022, the team added.
Inflation will surge through reopening but quickly calm as the economy normalizes, the bank said.
Another massive tranche of fiscal stimulus is on the brink of passage, and UBS sees the measure fueling strong growth well into next year.
Economists led by Seth Carpenter expect US gross domestic product to grow 7.9% from the fourth quarter of 2020 to the fourth quarter of 2021. Growth on a calendar-year basis will total 6.6%, a larger-than-usual difference due to depressed first-quarter gains.
The economy will continue to expand at a robust pace in 2022 as a new fiscal support measure further boosts the recovery, the team projected.
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Failure to close gender gaps in the US dampens growth and hurts recovery, Moody s said Monday.
The pandemic erased years of progress for prime working-age women participating in the labor force.
Closing the labor-participation gap between men and women can lift GDP by 5%, according to the IMF.
Closing gender gaps in the US labor market can accelerate the economic recovery and provide a lasting boost to overall output, Moody s Investors Service said Monday.
Gender disparities are nothing new to the US economy. Women earned less than men on average before the pandemic, and, during it, a lack of family-leave benefits forced many women out of the labor force as they assumed caretaking roles.
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The US economy will grow 8.1% in 2021 as the coronavirus threat fades for good, Morgan Stanley said.
GDP will return to pre-pandemic levels by the end of the first quarter, the bank s economists added.
Unemployment will fall to 4.9% in 2021, the bank said, still above the rate from before the crisis.
Morgan Stanley has lifted its forecasts for 2021 economic growth in the US, citing a collection of encouraging trends for its brighter outlook.
Gross domestic product is now expected to grow by 8.1% on a fourth-quarter-by-fourth-quarter basis, up from 7.6%, the team led by Ellen Zentner said in a Tuesday note. Growth for 2022 was revised 0.1 percentage points lower to 2.8%.
Wall Street strategists are increasingly optimistic that the pandemic is in its final phase.
JPMorgan said in February the crisis will effectively end in 40 to 70 days.
The recession is effectively over, Morgan Stanley said Sunday.
One year after the S&P 500 tumbled nearly 8% on COVID-19 fears, experts on Wall Street see the US bearing down on the finish line of the pandemic.
Declining case counts, vaccine rollouts, and expectations for new stimulus have lifted spirits in recent weeks. Economists have upgraded growth forecasts and investors continue to shift cash from defensive investments to riskier assets more likely to outperform during a rebound. Major banks strategists are taking it one step further.