Mark Zandi is growing more concerned about the health of the US economy heading into 2022 following the apparent demise of the Build Back Better Act and the rapid spread of Omicron. "With Omicron looming and DC in disarray, risks to the economic recovery next year are not inconsequential and are rising," Zandi, the chief economist at Moody's Analytics, told CNN on Monday.
Moody's Analytics will most likely downgrade its US economic forecast in the coming days, Zandi said in a phone interview, due to the one-two punch from the worsening pandemic and Senator Joe Manchin's opposition to Build Back Better. Moody's is currently predicting GDP growth of 4.4% in 2022, but Zandi said that forecast will be cut by as much as one percentage point. "Right now, it does feel like this Covid wave is bigger and more serious than I thought it would be just a few weeks ago," Zandi said, pointing to the rapid spread in Europe, especially the United Kingdom.