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Fed’s Mester Says Unemployment Rate in U.S. Could Reach 15%

  • Says Fed is weighing what to do in municipal debt market
  • Central bank should remain focused on market functioning
Bloomberg business news
A Record 6.65 Million File for U.S. Weekly Jobless Claims
Updated on

Federal Reserve Bank of Cleveland President Loretta Mester said U.S. unemployment could rise as high as 15% as the U.S. forcibly shuts down important parts of its economy to help contain the coronavirus pandemic.

About 10 million Americans lost their jobs over the past two weeks, based on initial jobless claims reported Thursday -- far exceeding forecasts. The numbers mean unemployment may already be approaching 10%, nearly matching its peak following the financial crisis of 2008-09, as fallout from the contagion ravages the labor market.