Central-Bank Outlook, Trump vs Powell, Negative Rates: Eco Day

(Bloomberg) --

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

• The Federal Reserve and other leading central banks are declaring the peak in global interest rates has been reached and are readying to start the march down
• Meanwhile, here’s a deep dive into the new battle lines being drawn between President Donald Trump and Fed Chairman Jay Powell
• Europe’s unconventional experiment with negative interest rates to spur economic growth and inflation is looking like a trap
• Here’s why a small revision in euro-area inflation data -- largely reflecting idiosyncrasies in Germany -- won’t shift the needle in any way at the European Central Bank
• The Bank of England’s balance sheet should fall to around half its current size when quantitative easing is finally unwound, according to the institution’s executive director for markets
  • Staying in the U.K., inflation held steady at the 2% target last month, leaving the BOE under no pressure to raise interest rates
• Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month. Meanwhile, China’s holdings of Treasuries dipped in May to the lowest in two years amid an escalation of the trade war
• Should Lesetja Kganyago announce a cut in South African interest rates this week, as expected, it won’t be because the nation’s politicians want him to

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, Brian Swint

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