Policy and fiscal risk could hamper a long-term economic recovery


Construction worker make infrastructure repairs on the intersection of Church Avenue and Coney Island Avenue in the Flatbush neighborhood of Brooklyn borough on April 06, 2021 in New York City.

Michael M. Santiago | Getty Images

The setting for 2021 seems clear: A powerful growth trajectory fueled by an influx of government spending as the U.S. recovers from the Covid-19 crisis and heads into the fastest economic acceleration in nearly 40 years.

But after that, then what?

The path beyond this rocket-fueled year looks far less clear.

One-time spending has rarely been the catalyst for long-term growth. Fiscal and monetary policy that now serve as irresistible tailwinds could soon turn into…


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