Tax & Spend
Bidenomics Boosts US Economy, Fanning Soft-Landing Hopes, Inflation Fears
- Spending on clean energy, chips programs is now kicking in
- Government efforts are ‘crowding in’ private investment
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The economy is getting a boost from Bidenomics and a bulging federal budget deficit, simultaneously fueling hopes the US will avoid a recession while fanning fears it will be stuck with too much debt and too-high inflation.
A trio of legislation championed by President Joe Biden – stepped-up infrastructure spending, increased investment in a green economy and a build-up in semiconductor manufacturing – helped galvanize demand in the second quarter and is likely to have a bigger impact going forward.