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Fed’s Bullard Says ‘Full Recovery’ for U.S. in Reach by Year End

  • Fed policy won’t change even if upbeat forecast met, he says
  • Bullard says fiscal boost has been considerable already
James Bullard
James BullardPhotographer: Luke MacGregor/Bloomberg
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Federal Reserve Bank of St. Louis President James Bullard, in the most upbeat comments by a central banker since the start of the Covid-19 outbreak, said the U.S. economy may surge at a 35% annualized rate in the third quarter and the nation may be close to a complete recovery by year-end.

Rapid expansion in gross domestic product in the third quarter “may put the U.S. economy within reach of a sort of ‘full recovery’ by the end of 2020,” Bullard, who doesn’t vote on monetary policy this year, said in a virtual presentation to the Global Interdependence Center on Thursday. Estimates on Bloomberg show the economy rebounding an annualized 25% in the third quarter from the prior three months, when it recorded the sharpest plunge on record.