Cleveland Federal Reserve President Loretta Mester echoed Chairman Jerome Powell’s mostly pessimistic view on the economy, telling CNBC on Wednesday that while growth is likely to return by the end of the year, it could be slow.
The central bank official said during a “Power Lunch” interview that unemployment is still likely to be near or above 10% as the U.S. struggles to regain momentum lost during the national coronavirus-induced shutdown.
“We could see the economy start to reopen activity picks up some improvement over the second half of the year. But at the end of year, we are still going to have output below the level it was at the end of last year,” Mester said. That would entail an…