by Jonnelle Marte
(Reuters) – While the U.S. economy has seen improvement in areas that benefit from low interest rates, such as housing, there are areas that will take longer to rebound and that will depend on the coronavirus, Cleveland Federal Reserve Bank President Loretta Mester said Monday.
For example, some people are able to work at home and there has been an increase in auto sales. But industries in the service sector, including restaurants, small businesses and others that require face-to-face interaction, are lagging, Mester said.
“It’s almost like a tale of two cities,” Mester said while answering questions during a webinar organized by the African American Chamber of Commerce of Western Pennsylvania. “You have a lot of the economy now where activity is picking up, but you have a great part of the economy – travel, leisure and hospitality – where you’re not seeing a pickup. I think that’s going to continue for some time.”