After Sen. Joe Manchin (D-WV) revealed that he would not support President Joe Biden's "Build Back Better" plan, which is known as the "human infrastructure" bill, Dow Futures tumbled. Now, a major world bank is warning that they're readjusting predictions about American GDP.
Sunday evening Investors.com revealed that the stock market is predicted to tumble on Monday. Due to Manchin's interview with Fox News Sunday morning, the big bank Goldman Sachs gives the Biden bill a less than 50-50 chance of passing Congress. The company then lowered its 2022 GDP forecasts for the United States.
It puts Manchin in a difficult position to single-handedly hurt the U.S. economy, tweeted CNBC Contributor James Pethokoukis.
As Goldman said in the statement, "There is also still a chance that Congress retroactively extends the expanded child tax credit, with some modifications, though we think the odds of this occurring are less than even."
There is also a concern that anti-vaxxers are also causing COVID-19 to spread and evolve into yet another variant.
"While many questions remain unanswered, we now think a moderate downside scenario where the virus spreads more quickly but immunity against severe disease is only slightly weakened is most likely," said Goldman economist Joseph Briggs, CNN reported.
See the full statement below or at CNN.com.