(TargetLiberty.org) – Financial services experts Goldman Sachs ends each year with a set of predictions on how the next year is going to turn out. Their guesses for 2020 were thrown off badly by the coronavirus pandemic, but they’re trying again. Here’s what they think will happen in 2021:
- The Republicans will win at least one Georgia runoff election seat and keep control of the Senate. That means if Biden ends up in the White House he won’t be able to enact the more radical parts of his program. This is good news for the US in general, but Goldman Sachs thinks it’s particularly good for the stock market.
- Most of the US population will be vaccinated against coronavirus by the middle of 2021; this will let the economy recover. Goldman Sachs expects a V-shaped recovery, with the economy rebounding back to pre-pandemic levels as quickly as it shrank this year.
- The Federal Reserve won’t raise interest rates next year – in fact, it won’t raise them until around 2025. This means cheap borrowing, which will help boost the economic recovery.
- The dollar will lose about 6% of its value, making US goods cheaper abroad; that’s good news for factory workers.
Low recession risk, faster growth, and employment at a 70-year high — here are Goldman Sachs' predictions for the US economy in 2020 https://t.co/w5VG3RzJzQ
— Business Insider (@businessinsider) November 28, 2019
Of course, there could be another plague that’ll knock all these predictions off track; if 2020 has taught us one thing it’s that we never know exactly what’s waiting around the corner. It would be nice if these predictions came true, though.
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