Goldman lowers 2022 growth forecasts after Manchin says no to BBB

Goldman Sachs lowered its GDP forecast for 2022 on Sunday after Sen. Joe Manchin (D- W.Va.) effectively killed President Biden’s Build Back Better legislation.

“A failure to pass BBB has negative growth implications,” Goldman Sachs said in a report on Sunday after Manchin said he will not support Biden’s $2 trillion spending plan, according to Bloomberg.  

Goldman Sachs announced that it had lowered its growth forecast from 3 percent to 2 percent in the first quarter; 3.5 percent to 3 percent in the second and from 3 percent to 2.75 percent in the third, Bloomberg reported.

The Goldman economists said the “enactment had already looked like a close call and in light of Manchin’s comments we are adjusting our forecast to remove the assumption that BBB will become law.” 

Manchin announced his plans to reject the legislation during an appearance on “Fox News Sunday.”

“I cannot vote to continue with this piece of legislation. I just can’t. I tried everything humanly possible. I can’t get there,” the senator said. “This is a no on this legislation.”

Following Manchin’s comments, the White House issued a statement accusing the senator of going back on his word and breaching commitments made to Biden and fellow lawmakers. 

“Just as Senator Manchin reversed his position on Build Back Better this morning, we will continue to press him to see if he will reverse his position yet again, to honor his prior commitments and be true to his word,” White House press secretary Jen Psaki said.