As the Delta coronavirus variant surges and inflation spikes and supply chain problems persist, employers complain about a lack of workers, some economists are already beginning to adjust their forecasts for the remainder of this year and 2022. Even the huge spending plans Biden wants to push through Congress, which include a possible bipartisan infrastructure deal would not provide a quick-term boost for the economy as it heads into 2022.The White House is acutely aware of the importance of avoiding any backsliding on Covid that could lead to new lockdowns.Since late 2019, we've known that Covid needs to be under control. A person who is familiar with White House economic thinking said this. You risk more mutations and going back on the original plan. It's all. It's all about the game.The economy grew 11.8 percent last month thanks to the generosity of federal stimulus benefits, including $1,400 in direct payments for individuals. Consumers who had saved during the lockdown, helped by generous federal stimulus benefits, such as $1,400 in direct payments to them, pushed it forward. While economists are still forecasting strong growth for the remainder of the year, it is not as high as that of the second quarter. However, they do expect solid growth in 2022 as more sectors reopen. The labor market continues to recover after the pandemic which claimed 22 million jobs.Many are reducing their forecasts partly because of the uncertainty caused by the virus. The Federal Reserve's extraordinary economic support has not only benefited investors but also inflated asset values and provided little benefit for the rest.RSM advises middle market companies and Joseph Brusuelas, chief economic economist at the consulting firm RSM, believes that rising risks surrounding the Delta variant will push full reopening into 2022. Economists have prematurely declared victory over this pandemic, but we aren't there yet. It is likely that we will not reach this point until next year.Economists believed that Covid was in decline in the U.S. as recently as two weeks ago. They also expected that most activities would return to normal by the fall. However, the rise of the Delta variant and the possibility of additional mutations that could evade vaccines have changed these views.A full recovery is also hindered by political conflicts.Richard Bernstein, founder and CEO of Richard Bernstein Advisors, stated that we are currently seeing a huge misallocation in resources across the economy. This can cause long-term damage. We are fighting over the infrastructure package, and whether vaccines should be given to people while billionaires fly off to space. It's quite bizarre, and it is not sustainable.
