Fed Predictions, Holiday Retail Hope, Failing Lifeline: Eco Day

(Bloomberg) -- Welcome to Tuesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The Federal Reserve’s new approach to setting interest rates will probably be hard to divine from the economic projections it’s set to publish on Wednesday
  • More than two months since its launch, the Fed’s Main Street Lending Program isn’t living up to expectations as few banks are willing to provide the loans
• Retail sales in the U.S. will actually grow this holiday season, according to new projections from Deloitte, despite ongoing economic uncertainty and higher unemployment brought on by the global pandemic
• A 50-member group of House Democrats and Republicans will release a $1.52 trillion coronavirus stimulus plan Tuesday in a long-shot attempt to break a months-long deadlock on providing relief to the pandemic-battered U.S. economy
• Canada’s largest lenders are warning Prime Minister Justin Trudeau’s government it doesn’t have carte blanche to run massive budget deficits, even though there’s some room for additional spending in the next couple of years
• Britain’s labor market took a turn for the worse in July even as the economy gradually reopened, taking total job losses under the pandemic to almost 700,000 and raising pressure on the government to extend its wage support
• China’s economic recovery from Covid-19 accelerated, spurred by a rebound in consumption as virus restrictions eased and larger-than-expected gains in industrial output

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