Goldman Sachs revises up US GDP 2021 forecasts to 8.0%

In its latest US economic forecasts, Goldman Sachs revises up GDP predictions from 7% to 8.0% for 2021 while citing enormous fiscal stimulus coming out of Washington. 

The investment bank also anticipates a reduction in the US Unemployment Rate while expecting a 4.0% target for end-2021 versus 3.5% and 3.2% forecasts for 2022 and 2023 respectively.

It should be noted that the US bank suggests a gradual weakening of inflation, to 2.1% Core PCE figures for 2023, which in turn defies the reflation risks.

However, the upside risk to the inflation figures is something that’s been chattered off-late. As a result, this week’s Fed meeting will be the key to watch.

Read: Will the Fed calm us treasury market volatility?