Fed's Mester: Economic data is very ugly reflecting shutdown in activity

"The economic data is very ugly reflecting the shutdown in the activity, furloughs and layoffs," Cleveland Federal Reserve President Loretta Mester told Bloomberg TV on Friday. 

"The Fed is working to help markets function and support businesses so they can be ready when economy reopens," Mester added. "It will take some time for the economy to pick back up and the Fed is trying to limit the economic damage."

Regarding the Fed's support for corporate bonds, Mester said the central bank was trying to help companies affected by the virus by no fault of their own.

Market reaction

The market mood remains upbeat on Friday with US stock index futures adding more than 2% on a daily basis.