Joe Biden Could Oversee Economic Boom as Goldman Sachs Predicts Rapid Growth

Joe Biden Could Oversee Economic Boom as Goldman Sachs Predicts Rapid Growth

President Joe Biden could oversee a huge boost to the U.S. economy in the wake of coronavirus crash last year—potentially boosting Democratic chances of cementing further power in the 2022 midterm elections.Goldman Sachs economists forecast gross domestic product growth of 8 percent in 2021—up from 2.3 percent in 2019—while also predicting the unemployment rate could fall to around 4 percent, down from 6.2 percent recorded in February.In a note to clients, the investment bank said that pent-up savings, the reopening of economic activities, and a raft of federal COVID relief funding measures would coalesce as "powerful growth impulses" for the economy.It further forecast that in 2022 the U.S. unemployment rate would drop to 3.5 percent, a figure below pre-pandemic levels. That could prove to be a factor in swing states and poorer regions during the midterm elections.President Joe Biden speaks on the anniversary of the start of the Covid-19 pandemic, in the East Room of the White House in Washington, DC on March 11, 2021.

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"We expect inflation dynamics to mirror those last cycle, and therefore expect this forecast to translate to only 2.1 percent core [personal consumption expenditure] inflation in 2023," Goldman Sachs added in its