Fed's Mester says US unemployment could reach as high as 15%

Federal Reserve Bank of Cleveland President Loretta Mester said the US unemployment could rise as high as 15% as the US 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," Bloomberg reported.

This report is a stark reminder that the US economy is imploding towards a recession with US initial jobless claims surged to 6.65 million in another week for the record books. The data today, combined with last weeks record data rising to 3.3 million is potentially the prelude of what is to come in the next followings weeks ahead as the COVID-19 tears through the US population. 

"Cumulatively, this puts initial claims over the past two weeks at just under the 10 million mark. During the GFC, non-farm payrolls fell by 8 million, though these don’t map exactly. It all points to a significant rise in the unemployment rate," analysts at ANZ Bank warned.