Goldman Sachs has turned even more optimistic on the outlook for the US economy this year under President Biden.

In a weekend note to clients, economists at the bank raised their forecast for US GDP to 6.6 percent in 2021 from 6.4 percent. Goldman now expects a lower US unemployment rate of 4.5 percent at the end of 2021, down from 4.8 percent.

The projected economic expansion will be fueled by a boost in disposable incomes and government spending, the bank said, as Biden’s $1.9 trillion stimulus plan accentuates his intent to shore up the slumping US economy.

“We do not expect all of the elements of the $1.9 trillion proposal to pass, but we have raised our expectations for state fiscal aid, education and public health spending, unemployment insurance benefits, and several smaller items,” Goldman economists wrote.

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