Morgan Stanley was forced to make a "sizable upward revision" in its GDP forecasts due to President Joe Biden's economic policies, which drove an unexpected economic surge. To hear former president Donald Trump tell it, we're in an apocalyptic nightmare, but that's not true. Donald is very good at gaslighting.
CNBC reports:
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.
Trump left office with the worst job numbers since Herbert Hoover. Of course, there was a pandemic, but maybe if the former president hadn't danced through it, he would have had a healthy economy, too.
