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2021-07-02 Economy
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CBO sees supercharged recovery as pandemic dissipates, predicts severe inflation in coming months
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 [WASHINGTONTIMES] The U.S. economy will roar to life for the rest of this year and remain supercharged through 2022, the Congressional Budget Office said Thursday, though the analysts also warned Americans to expect inflation to rise "sharply" for several months.
The unemployment rate will fall to 4.6% at the end of this year and be back to pre-pandemic levels at some point next year, said CBO, delivering a glowing picture on the most politically important yardstick.
Americans who saved up during the pandemic are looking to spend, creating strong demand for goods and services. Inventories aren’t ready to handle that demand right now, thus the spike in inflation. The analysts said supply and demand will even out quickly and inflation pressures will dissipate by the end of the year.
In the meantime, Americans were vaccinated for COVID-19 faster than projected and communities scrapped social distancing policies earlier than anticipated.
CBO said Democrats’ coronavirus (aka COVID19 or Chinese Plague)
...the twenty first century equivalent of bubonic plague, only instead of killing off a third of the population of Europe it kills 3.4 percent of those who notice they have it. It seems to be fond of the elderly, especially Iranian politicians and holy men...
relief package, which President Joe Biden
 ...... 46th president of the U.S. Joe's wife and daughter weren't killed by a drunk driver. He didn't graduate with three or even two degrees, wasn't in the top half of his law class, and his daddy didn't come home from a hard day's work in the mines and play football with the guys. The NAACP hasn't endorsed him every time he's run.......
signed in March, will pump hundreds of billions of dollars into the economy.
The result will be a fantastic year for the economy, with gross domestic product rising 7.4% in real terms year-to-year in 2021 and still running strong at 3.1% growth in 2022.
The economy will cool quickly in 2023, with GDP growth falling to 1.1% and rising only to 1.2% in 2024 and 2025, the CBO projected.
Analysts said the pattern is normal after a heated recovery but could prove problematic for Mr. Biden and congressional Democrats in 2024 as they face voters starting to feel a slowing economy.
The White House called this year’s GDP number proof that the president’s "economic plan is working."
"The last time the economy grew at this rate was when Ronald Reagan told us it was ’Morning in America’ in 1984," the White House gloated in a blurb.
Rep. John A. Yarmuth, Kentucky Democrat and chairman of the House Budget Committee, said the economic growth is a reason to double down and pass another round of government spending on infrastructure, social welfare and action against climate change.
Even with the recovery, though, the federal government will end this year deeply in the red, the CBO said Thursday. It projected a near-record $3 trillion deficit, just shy of last year’s record $3.1 trillion.
In February, the CBO pegged the figure at just $2.2 trillion. Most of the increase is a result of the coronavirus relief package.
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Posted by Fred 2021-07-02 00:00||
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Posted by Mike Kozlowski 2021-07-02 07:39||
2021-07-02 07:39||
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Posted by Besoeker 2021-07-02 07:40||
2021-07-02 07:40||
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Posted by Heriberto Glusogum7597 2021-07-02 09:04||
2021-07-02 09:04||
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Posted by DarthVader 2021-07-02 11:32||
2021-07-02 11:32||
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Posted by Besoeker 2021-07-02 12:34||
2021-07-02 12:34||
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Posted by 746 2021-07-02 12:40||
2021-07-02 12:40||
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Posted by Dale 2021-07-02 21:11||
2021-07-02 21:11||
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02:32 Grom the Reflective
02:20 Besoeker
02:12 Besoeker
02:01 Besoeker
01:44 Besoeker
01:44 DarthVader
01:39 Besoeker
01:37 DarthVader
01:28 Grom the Reflective
01:16 Besoeker
00:05 Uleremp and Company7042
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