Fed’s Mester says reopening phase may be more protracted than many anticipated By Reuters

Fed's Mester says reopening phase may be more protracted than

© Reuters. Cleveland Federal Reserve Bank President Loretta Mester poses during an interview on the sidelines of the American Economic Association’s annual meeting in San Diego

(Reuters) – U.S. economic activity has slowed in recent weeks as coronavirus infections have risen, and the country’s reopening phase may take longer than many initially anticipated, Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday.

Some states have hit pause on their plans to reopen businesses and imposed new restrictions after seeing infections rise, Mester said, a trend that is causing consumers to cut back on spending.

“The reopening phase has proved to be challenging,” Mester said in remarks prepared for a virtual event on Wednesday. “Thus, the reopening phase may be more protracted than many had anticipated when it started.”

A review of high-frequency data and discussions with regional contacts show that U.S. economic activity is slowing, Mester said. For example, she said, spending on services, including money spent on travel and dining, remains well below pre-pandemic levels despite increasing in May and June.

Mester said she expects the unemployment rate to remain elevated at around 9% at the end of 2020. She projects that economic output will decline by 6% compared with the end of 2019.

“The uncertainty around this forecast is extremely high. We are in an unprecedented situation and outcomes depend not only on appropriate economic policy but also on public health considerations,” she said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.