Show an ad over header. AMP

I am the FIRST!!!

CBO projects economic growth will return to pre-pandemic level this year

U.S. GDP will return to its pre-coronavirus level by mid-2021 — a quicker than expected recovery from the economy's pandemic free-fall,according to new projections by the Congressional Budget office.

Why it matters: The latest estimates from the nonpartisan office paint a rosier — though still not great — path for the U.S. economy.


Data: Congressional Budget Office; Note: Inflation (PCE price index) and GDP estimates show percent change from prior year, Unemployment shows estimated fourth-quarter level; Chart: Axios Visuals

Details: The unemployment rate is estimated to hit 5.3% by year-end — versus the 7.6% the CBO estimated in July. (As of December, the unemployment rate was 6.7%.)

  • Longer-term, the CBO projects that the Federal Reserve's preferred inflation gauge will average 1.9% between 2024 and 2031 — slightly below the Fed's 2% inflation target.
  • By a different gauge, the CBO sees inflation averaging 2.2% within that timeframe.

Yes, but: It will still be another three years before there are as many employed Americans as there were before the pandemic hit.

Between the lines: The projections don't factor in the stimulus measures proposed by the Biden White House — and there are questions about whether these rosy forecasts could hurt the administration's case for additional stimulus.

  • The CBO said the $900 billion relief bill signed into law in December would boost the level of real GDP by 1.5% this year and next — though the bulk of the impact will happen in 2021.

regular 4 post ff

infinite scroll 4 pff

The billion-dollar COVID booster discussion

Pfizer said yesterday that it expects to sell nearly $34 billion worth of coronavirus vaccines this year — and there could be billions more behind that, if people who have gotten the shot ultimately need boosters.

Why it matters: It's unclear whether, when and for whom a coronavirus vaccine booster will be necessary. Pfizer has a lot of money riding on those answers, and executives are already making the case that many Americans will need a third dose.

Keep reading...Show less

Exclusive: Frank Luntz previews findings that point to feasible immigration compromise

A poll and series of focus groupshas honed a one-two punch for a doable immigration deal: Give Democratic lawmakers a real path to citizenship for Dreamers, and give Republicans tight border security that's more realistic than a wall.

Why it matters: The formula — by Frank Luntz, who rose to fame as a Republican pollster but in recent years has taken a more bipartisan approach to policy — would make real progress on one of the nation's biggest tragedies that Capitol Hill has failed to confront.

Keep reading...Show less

The political limits of Biden's climate agenda

Expect Joe Biden to pursue the most aggressive climate-change plan in U.S. presidential history should he win the election.

Driving the news: A sea change would come to Washington, D.C., but the aspirations he laid out in his campaign are far higher than what political reality allows.

Keep reading...Show less

Insights

mail-copy

Get Goodhumans in your inbox

Most Read

More Stories
<!ENTITY lol2 “&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;“> <!ENTITY lol3 “&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;“> <!ENTITY lol4 “&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;“> ]> &lol4;