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WASHINGTON — The US economy will bounce back to its pre-pandemic size by the middle of the year without any emergency stimulus, the US Congressional Budget Office projected Monday.
The report throws a monkey wrench into President Biden’s push to pass an enormous $1.9 trillion rescue plan ahead of a meeting with 10 Republican lawmakers at the White House on Monday evening after they presented their own more modest proposal.
The nonpartisan federal agency paints an optimistic forecast following a year-long fight with the coronavirus with has killed 441,000 Americans, put millions out of work, and shuttered large swaths of the US economy.
The office said gross domestic product would return to pre-pandemic levels by mid-2021 and will continue growing until 2026 as a vaccine reduces the number of new infections and the need for social distancing.
“Labor market conditions continue to improve.
Joe Machin of West Virginia, a key vote, have argued against passing such a big package which comes on the heels of a $900 billion aid bill passed by Congress, arguing it will add to the ballooning national debt.
At a press briefing on Monday, White House spokeswoman Jen Psaki swatted away criticism about Biden’s package and said it had been backed by other economic authorities.
“A new report by the Brookings Institution estimates that with the American rescue plan, we would boost GDP by 4 percent and return out economy to pre-covid levels by the end of 2021,” Psaki said.
The US flag seen on a financial illustration of the economy.Getty Images/iStockphoto
“A separate analysis by the by Moody’s Analytics found that the president’s plan would create 7.5 million jobs,” she said.