Central Bank Ammo, China Trade Hope, Fed Review: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Global central banks have room to further cut interest rates before they begin to do more harm than good, although the Fed is unlikely to push its benchmark below zero, say economists in a new survey
• China is still open to reaching a partial trade deal with the U.S., an official with direct knowledge of the talks said, signaling that Beijing is focused on limiting the damage to the world’s second-largest economy
• Can a Federal Reserve chair make a promise today that binds their successor in the future? That question is crucial as officials get down to serious debate over how best to pursue their goals for maximum employment and stable prices
  • Jerome Powell said the Fed will resume purchases of Treasury securities in an effort to avoid a repeat of recent turmoil in money markets. Just don’t call it QE
• Fabio Panetta -- now the Bank of Italy’s no. 2 official -- looks set to replace Benoit Coeure as one of six European Central Bank Executive Board members
  • Former ECB Chief Economist Peter Praet appealed for calm in an increasingly bitter row over monetary policy that threatens to mar President Mario Draghi’s final weeks in office
• Kristalina Georgieva, in her first major address as head of the International Monetary Fund, painted a downbeat picture of the world economy

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

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