US fiscal impasse will lead to below-forecast Q4 growth – Goldman Sachs
|The investment banking giant Goldman Sachs foresees Washington's stalemate on additional fiscal stimulus leading to a slower than expected US economic growth in the fourth quarter.
Economists have lowered their fourth-quarter gross domestic product forecast to 3% from 6% on a quarter-on-quarter basis after revising its base case to include a lack of additional fiscal stimulus until 2021, according to Business Insider.
Key quote (Source: Goldman's client note via Business Insider)
"We had previously assumed that Congress would attach a $1 trillion stimulus package to the continuing resolution at the end of this month that would include a partial extension of the extra unemployment benefit and additional PPP loans. We now think that any further stimulus will wait until early 2021," Thursday's client note said.
We are more confident that the widespread distribution of a coronavirus vaccine to the entire population will be achieved by Q3 rather than Q2 of the next year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.