U.S. Markets

Fed's Mester says U.S. economy could end 2020 down 6% for the year

FILE PHOTO: Cleveland Federal Reserve Bank President Loretta Mester speaks in London, Britain, July 2, 2019. REUTERS/Marc Jones

NEW YORK (Reuters) - U.S. economic growth picked up in the third quarter but it will take a while for the economy to dig out of the “deep hole” it fell into because of the pandemic, Cleveland Federal Reserve President Loretta Mester said Friday.

“We’re really in a deep hole,” Mester said during an interview with Yahoo Finance. “While when the economy started reopening we got some positive there in terms of activity, we’re certainly not back to where we were in February.”

Mester said she expects U.S. GDP will end 2020 about 6% below where it was at the end of last year and that she expects unemployment to remain elevated.

Reporting by Jonnelle Marte, Editing by Franklin Paul