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U.S. Economy Loses Fed, Fiscal Props After Powell-Manchin Pivots

  • Growth headwinds loom from end of monetary, fiscal stimulus
  • ‘Stall’ speed is late-2022 risk scenario, economist Zandi says
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Senator Manchin Says 'No' to Biden's Spending Bill
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The U.S. economy will spend 2022 learning to live with the coronavirus without much in the way of help from the Federal Reserve or the federal government -- especially with the derailing of President Joe Biden’s $1.75 trillion spending plan.

The Fed’s pivot last week toward tighter credit -- ending its emergency bond-buying program in March to pave the way for higher interest rates -- comes on top of a rollback in government spending programs put in place at the height of the pandemic. The fiscal squeeze will be even bigger if Democrats cannot salvage Biden’s social-spending package in the face of opposition from a key moderate senator.