Goldman Sachs cuts U.S. growth forecast on Joe Manchin's Build Back Better opposition


Sen. Joe Manchin (D-W.Va.) made waves on Sunday when he announced on Fox News Sunday that he won't vote for his party's Build Back Better domestic spending legislation. He sent an aide to let the White House and congressional leadership know less than a half an hour before going on air to drop his bombshell, and he "refused to take a call from White House staff" when they called to "head him off," a senior White House official told Politico's Ryan Lizza.
Republican moderates who voted for the bipartisan infrastructure deal Manchin helped negotiate were thrilled with the news, but congressional Democrats and the White House were not. Senate Finance Committee chairman Ron Wyden (D-Ore.) quickly released a new framework for a more narrowly focused Build Back Better plan, but the White House seems to think Manchin has killed the bill, releasing a sharply worded statement accusing him of going back on his written promise to President Biden.
Goldman Sachs decided Build Back Better is probably dead, too, and cut its forecast for U.S. economic growth accordingly.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"A failure to pass BBB has negative growth implications," Jan Hatzius and other Goldman Sachs economists said in a research report Sunday. Thanks to the "apparent demise" of the legislation, the U.S. should grow 2 percent in the first quarter of 2022, down from 3 percent, with more modest growth cuts in subsequent quarters. The "most important question for the near-term outlook," the economists wrote, is whether Democrats renew the expiring expanded child tax credit, as BBB would do.
White House Press Secretary Jen Psaki hit Manchin on the child tax credit provision, too. If he doesn't "reverse his position yet again, to honor his prior commitments and be true to his word," she said in her statement Sunday, "maybe Sen. Manchin can explain to the millions of children who have been lifted out of poverty, in part due to the Child Tax Credit, why he wants to end a program that is helping achieve this milestone — we cannot."
Psaki also suggested Manchin "explain to those families paying $1,000 a month for insulin why they need to keep paying that, instead of $35 for that vital medicine," and tell "the nearly two million women who would get the affordable day care they need to return to work why he opposes a plan to get them the help they need."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Gavin Newsom mulls California redistricting to counter Texas gerrymandering
TALKING POINTS A controversial plan has become a major flashpoint among Democrats struggling for traction in the Trump era
-
6 perfect gifts for travel lovers
The Week Recommends The best trip is the one that lives on and on
-
How can you get the maximum Social Security retirement benefit?
the explainer These steps can help boost the Social Security amount you receive
-
AMC hopes new ticket discounts will reinvigorate the movie theater industry
In the Spotlight The theater chain now has 50% discounts on both Tuesdays and Wednesdays
-
The FTC is pushing back against false 'Made in the USA' claims
The Explainer The agency has dubbed July 2025 'Made in the USA' month
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Higher toy prices from Trump's tariffs have arrived
In the Spotlight Three out of four toy products in the US come from China
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures