Trump Advisers Still Touting ‘V-Shaped’ Economic Recovery

Tthe virus surge in Sun Belt states on crimping growth will be limited

The U.S. economy is still set for a third-quarter recovery, and the impact of the virus surge in Sun Belt states on crimping growth will be limited, top Trump administration officials said.

“I don’t deny that some of these hot-spot states are going to moderate that recovery, but on the whole the picture is very positive and I still think the V-shaped recovery is in place,” White House economic director Larry Kudlow said on CNN’s “State of the Union” on Sunday.

“And I still think it’s going to be 20% growth rate in the third and fourth quarters,” he added.

Kudlow, who also said he expects a federal moratorium on renter evictions to be extended, aligned with Treasury Secretary Steven Mnuchin, who told Fox News he expects a major rebound after an historic slump in the quarter that ended June 30.

“We always have the second quarter was going to be a very bad quarter. Again, that’s not for economic reasons. That’s for health reasons. We literally shut down the entire economy,” Mnuchin said. “The third quarter, the consensus is 17% GDP [growth], so we do think you’re going to see a very big rebound.”

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