COVID-19 cases are back on the rise in the U.S. as the Delta variant spreads and some persist to oppose getting vaccinated.
But despite their risk to the economic recovery, Goldman Sachs isn’t yet ready to view it as a major problem for growth this year.
“We think the near-term economic impact of a virus resurgence in the U.S. would be modest,” said Jan Hatzius, Goldman Sachs’ chief economist, in new research.
Hatzius lists three reasons behind the call, which appears to be shared by broader market participants as stocks have continued to hit new records in the face of the pickup in COVID-19 infections in recent weeks.
“Widespread vaccination provides protection against severe infections, and the elderly populations most at risk of severe infection have high vaccination rates even in states with low overall vaccinations, making renewed policy restrictions less likely,” Hatzius explained.
Hatzius continued, “Measures of consumer…