Biden-Xi Meeting, Inflation Fight, Budget Cuts Fallout: Eco Day

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

• President Joe Biden will meet virtually with Chinese President Xi Jinping later today, with the White House downplaying expectations for any specific outcomes from the talks
  • Despite well known tensions, both sides did manage to cooperate on climate negotiations
  • For both leaders, however, their focus may not be on geopolitical matters right now
  • China is still trying to control the fallout from a domestic property crisis, while Biden faces slumping poll numbers as his landmark economic package remains hung up in Congress and he faces mounting pressure to take action on oil prices
• Federal Reserve Bank of Minneapolis President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation even as it causes pain for Americans, because it is likely to prove temporary
  • Treasury Secretary Janet Yellen said controlling the Covid-19 virus in the U.S. is the key to easing inflation
  • The White House’s top economic adviser said Biden’s $1.75 trillion economic bill that’s stalled in Congress would counter inflation for Americans by lowering the cost of child care, health care and housing
  • Goldman Sachs Group Inc. economists said the recent source of the surprising U.S. inflation surge will turn into a drag on prices next year
  • Morgan Stanley economists are sticking with their prediction that the Fed won’t raise interest rates until 2023, breaking ranks with their own chief executive officer
• The withdrawal of pandemic spending will likely have more impact on the global economy next year than monetary tightening
• As supply chains fray with standardized metal boxes both empty and full of goods, the stars are aligning for a product that was once a hard sell: shipping containers that fold up
• Wealth tripled over the last two decades, with China leading the way and overtaking the U.S. for the top spot worldwide, according to McKinsey
• Finally, here’s what’s to look out for in the world economy this week

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