Bidenomics FTW

Created
Sun, 23/07/2023 - 07:00
Updated
Sun, 23/07/2023 - 07:00
The public isn’t seeing this … yet. But there are 16 months to the election. It may start to sink in with some of them:  Morgan Stanley is crediting President Joe Biden’s economic policies with driving an unexpected surge in the U.S. economy that is so significant that the bank was forced to make a “sizable upward revision” to its estimates for U.S. gross domestic product. Biden’s Infrastructure Investment and Jobs Act is “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley, in a research note released Thursday. In addition to infrastructure, “manufacturing construction has shown broad strength,” she wrote. As a result of these unexpected swells, Morgan Stanley now projects 1.9% GDP growth for the first half of this year. That’s nearly four times higher than the bank’s previous forecast of 0.5%. “The economy in the first half of the year is growing much stronger than we had anticipated, putting a more comfortable cushion under our long-held soft landing view,” Zentner wrote. The analysts also doubled their original estimate for GDP growth in the fourth quarter, to 1.3% from 0.6%. Looking into next year, they raised their forecast for real GDP in 2024 by a tenth of a percent, to 1.4%. “The narrative behind the numbers tells the story of industrial strength in the U.S,” Zentner wrote. Morgan Stanley’s revision came at a pivotal time for the Biden White House. The president has spent the summer crisscrossing the country, touting his economic achievements. “Together we are transforming…