Deutsche Bank upgrades US GDP to 7.4% in 2021 on stimulus push – Reuters

The Deutsche Bank economists raised their 2021/2022 forecasts for US GDP amid expectations of a bigger stimulus package, Reuters reports, citing a strategist at the German bank on Wednesday.

Key quotes

"They've revised their baseline expectations for the next fiscal plan up from nearly $1 trillion to $1.6-1.7 trillion, with their 2021 growth forecast upgraded by 1.2 percentage points to 7.5% (Q4/Q4) and their inflation numbers pushed a bit higher too with risks on the upside.”

“Expect the Federal Reserve to announce a tapering of its bond buying programme at the December meeting with a clear signal of the timeline in August.”