New York (CNN Business) The US economic recovery will slow more than feared during the final three months of the year because Congress is almost certainly will not provide more federal aid, Goldman Sachs said Thursday. The Wall Street bank slashed its fourth-quarter US gross domestic product growth forecast in half to just 3% on an annualized basis because of the deadlock in Washington. That would mark an extreme deceleration from the rapid growth economists are predicting for the third quarter, when Goldman expects US GDP to grow at an annualized pace of 35%. "At this point we think it is clear that Congress will not pass additional fiscal stimulus this month," Goldman Sachs economists wrote in a note to clients. "We now think any further stimulus will wait until early 2021."

Source: CNN September 24, 2020 13:40 UTC