Fed Alumni Warn on Crises, BOE Doubts, ECB Setback: Eco Day

(Bloomberg) -- Good morning Americas. Here’s news and analysis from Bloomberg Economics to help get your Wednesday started:

  • Federal Reserve policy makers appear confident that they have the weapons they’ll need to fight the next financial crisis. Some of their predecessors, including Ben Bernanke and Timothy Geithner, aren’t so sure
    • The Fed will release its Beige Book economic report later Wednesday, which is based on anecdotal information collected by its 12 regional banks
  • An anticipated pickup in U.K. inflation failed to materialize last month, a development that sent the pound lower as investors pared bets for a Bank of England interest-rate increase next month
    • Meanwhile euro-area core inflation was revised lower, a slight setback for the ECB and underlining the need for caution in scaling back accommodation
  • Eastern European economies are finding a tougher path to adopt the euro, with Bulgaria the latest to accept stricter conditions than in the past
  • Unprecedented stimulus by the European Central Bank helped ease income inequality in the euro zone, with poorer households benefiting most, according to a study
  • British minorities are narrowing the gap in education but not yet being rewarded with bigger paychecks
  • China is still the biggest banker for the U.S., judging by foreign holdings of Treasuries
  • World Cup fever actually may have been a drag for consumer spending in Russia

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