President Joe Biden’s $1.9 trillion stimulus plan approved by Congress on Wednesday could power the US economy to its strongest annual growth rate in four decades.
Economists surveyed by Wall Street Journal expect the economy to expand by 5.95% this year, the fastest in nearly 40 years.
Oxford Economics’ chief US economist Gregory Daco foresees the latest stimulus to add 3 percentage points to the US GDP growth this year, and between 3 million and 3.5 million jobs, according to Wall Street Journal.
Wendy Edelberg, an economist and senior fellow at the Brookings Institution, expects the economy to 7% this year and 4% in 2022 before slowing to more modest growth in 2023.
Should inflation rise at a faster pace along with growth, the US Federal Reserve may feel pressured to scale back stimulus.