Morgan Stanley Raises Economic Growth Forecast, Biden Says Infrastructure ‘Boom’

Morgan Stanley raised its economic growth forecast this week, citing reports of a “massive infrastructure boom” driven by President Biden’s infrastructure bill.

“The economy is growing much stronger than we expected in the first half of the year, putting a very comfortable cushion under our long-term soft landing view,” Morgan Stanley’s chief U.S. economist Ellen Sentner said in a note on Thursday, MarketWatch reported.

“Manufacturing construction has shown broad strength,” he added.

ticker Security Past Change conversion %
Mrs Morgan Stanley 94.01 +0.21 +0.22%

Therefore, Morgan Stanley has made a “significant upward revision” to its economic forecast, forecasting GDP growth of 1.3% in the fourth quarter, versus their original forecast of 0.6% and 1.9% growth in the first half of the year, according to CNBC, which was 0.5%.

Investors are still bullish on the US economy amid fears of a slowdown

The White House began referring to President Biden’s economic policies as “bidenomics,” a term first used by Republicans. (Spencer Platt/Getty Images/Getty Images)

“The story behind the numbers tells the story of industrial strength in America,” he wrote.

bilateral Infrastructure Investment and Jobs Act Signed in late 2021 and the De-Inflation Act became law last August.

Still, Biden’s poll numbers Stay underwater amid a presidency plagued by hyperinflation following the coronavirus pandemic.

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The president has recently been touting his economic and infrastructure successes, calling his policies “bidenomics,” a term first used derisively by Republicans.

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“While our work is far from over, Bitenomics is already delivering for the American people,” the White House said in a statement late last month. “Our economy has added more than 13 million jobs — including nearly 800,000 manufacturing jobs — as we unleashed a manufacturing and clean energy boom.”

However, Republicans continue to hammer the president on the economy.

“Bidenomics is about blind faith in government spending and regulation,” House Speaker Kevin McCarthy said Friday, according to CNBC. “It’s an economic disaster where the government is making America worse for decades—high inflation, high gas prices, low wages, and crippling uncertainty.”

Biden visited Philadelphia on Thursday to tout his economic successes, but blue-collar workers there said it still hasn’t worked for them.

“We’re still fighting. We could be better,” the man, Tony, told Fox News. “The pay will be better.”

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Another man, Joe, said, “I work as hard as I can so I can make ends meet. I make a little more money, but I pay more for everything. So nothing really changes.”

At a Philadelphia shipyard on Thursday, Biden said, “I’m not here to declare victory; I’m here to say we have a long way to go in the economy. But there’s still a lot of work to be done. We have a plan that will turn things around quickly.”

Fox Business has reached out to Morgan Stanley for comment.

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