A Dirty Trick for Biden's Christmas Tree, Omicron Dominates

Throughout 2021, Biden has been desperately pushing his economic agenda and its funding. We are talking about the infrastructure plan, which was cut in the process from 2 trillion to less than 1 trillion, as well as the so-called Build Back Better Act, within which it was assumed 1.75 trillion additional costs for various social and similar items.

So yesterday Biden got a giant pig under his Christmas tree. Senator Joe Manchin (Democrat) effectively destroyed President Joe Biden's economic agenda by rejecting the Build Back Better Act, which means he has no hope of a Senate vote. In a sharply critical statement, the White House called Manchin's decision "a sudden and inexplicable reversal."

It is clear that this is not the end, the act can be revised, something can be cut, something can be removed, but in any case it is a waste of time. To understand the extent of the damage, we will cite just one fact. As soon as Manchin's demarche became known, Goldman Sachs Group Inc. immediately cut their forecast for US economic growth for next year. Goldman Sachs now expects GDP to grow at an annualized rate of 2% in the first quarter, up from 3% earlier. The bank also cut its GDP forecasts for the second quarter to 3% (from 3.5% earlier) and for the third quarter to 2.75% (up from 3% earlier).

In general, it is not surprising that the US stock market was under pressure yesterday, losing more than 1% on all underlying indices.

With omicron raging (it has become the dominant strain in the US with a 73% share) and only a third dose of vaccine can stop it, conditions continue to be favorable for sales in the US stock market.