Rosengren’s Caution, PBOC’s Easing, German Stimulus: Eco Day

(Bloomberg) --

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Federal Reserve Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank, arguing he’s not convinced that slowing trade and global growth will significantly dent the U.S. economy
• Meantime, President Donald Trump urged the Fed to cut by a full percentage point to aid U.S. and global growth while complaining the “dollar is so strong that it is sadly hurting other parts of the world”
• The German government is getting ready to act to shore up Europe’s largest economy, preparing fiscal stimulus measures that could be triggered by a deep recession, according to two people with direct knowledge of the matter
• Loans will get a little cheaper for Chinese companies after officials introduced a revamped benchmark lending rate; Bloomberg Economics says the People’s Bank of China has signaled intent to reduce borrowing costs to buttress growth
• Head-spinning uncertainty on trade, much of it emanating from Trump, is a major drag on global growth, writes Bloomberg Economist Dan Hanson. Tariffs on Chinese imports are getting a lot of blame for slowing the global economy, but it’s the uncertainty from the president’s Twitter habit and trade policy more broadly that could be even more harmful
• Australia’s central bank is ready to cut interest-rates further if evidence suggests this would boost the economy, and said it reviewed global experience with unconventional steps when policy makers met two weeks ago

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