- Wall Street is finally accepting diminished chances for a near-term stimulus deal, and firms’ latest GDP forecasts reflect growing pessimism toward the economy’s chances without fresh aid.
- Goldman Sachs halved its GDP growth forecast to 3% on Wednesday. JPMorgan followed suit one day after, cutting its estimate to 2.5% from 3.5%.
- Morgan Stanley and Bank of America trimmed their expectations earlier in the month. All four of the Wall Street giants cited an absence of new fiscal relief for their gloomier outlooks.
- Still, some hope for a spending package emerged Thursday. Treasury Secretary Steven Mnuchin said new stimulus is “still needed,” and top Democrats rolled out a new $2.4 trillion proposal that could be voted on as early as next week.
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With the US economic recovery slowing and stimulus still stuck in a legislative deadlock, Wall Street is