Goldman 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.on Wednesday, Raphael Warnock and Jon Ossoff defeated their Republican rivals, handing control of the Senate to the Democrats for the first time since 2015 and giving the party unified control of government for the first time since 2011.
Goldman Sachs expects the economy to expand at a rate of 6.4% in 2021, compared with a previous forecast of 5.9% and a consensus forecast of 3.9%, making it one of the most bullish banks on Wall Street.Wall Street experts are calling Georgia's runoff results 'the first surprise of 2021.' Here's how 4 of them recommend positioning your portfolio for what could happen next.
Goldman Sachs also expects the government to approve another $200 billion in fiscal aid to state and local governments, as well as an extra $150 billion in unemployment benefits and another $100 billion in other spending. The bank added: "Even if early vaccination of high-risk groups alleviates some of the burden on hospital resources, virus spread and hospitalizations are likely to remain high among lower-risk groups who will not be vaccinated until later."