Powell Grilling, Go-Slow AI, Busy Central Bank Week: Eco Day

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

• Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin are set to be grilled by lawmakers Tuesday on the need for more stimulus to shore up the U.S. economy’s recovery from the coronavirus slump
  • Confronted by a pandemic that has devastated the economy, Powell declared no less than 10 times last week that the central bank has a “powerful” new monetary policy road map for returning the U.S. to full employment and lifting inflation temporarily above 2%
  • The Fed adjusted its guidance to banks around its $600 billion emergency Main Street Lending Program, in an apparent attempt to encourage them to make more loans
• The global shift toward robotics and artificial intelligence across advanced economies is currently in a go-slow phase in the U.K. -- where both Covid-19and Brexit have hampered progress
• The global economy has bounced back faster than expected, with output recovering half of its pandemic-induced slump, according to Deutsche Bank economists
• Record low interest rates, rising commodity prices and improved mobility data have been buoying expectations of a recovery across emerging markets even as investors cast a wary eye toward November’s U.S. presidential election
• More than a dozen central banks will this week confront a new reality where monetary policy in the world’s biggest economy is set to stay ultra-loose for the foreseeable future -- read our preview of the week ahead

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