Fed Chair Search, Bubble Warnings, BOE’s Message: Eco Day

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day.

• Federal Reserve Governor Lael Brainard was interviewed for the top job at the U.S. central bank when she visited the White House last week, according to people familiar with the discussion
• Bubble warnings are ringing louder after a week of dovish central bank bombshells fueled the easiest conditions in nearly four decades
  • The Fed is warning that prices of risky assets keep rising, making them more susceptible to perilous crashes
• Romania is expected to deliver its biggest interest-rate hike since the 2008 financial crisis, embracing a trend sweeping across emerging Europe. Serbia will probably buck the trend and keep borrowing costs unchanged.
• Investors haven’t yet fully embraced the Bank of England’s message on the likely speed of U.K. interest rate rises. Meantime, one of the architects of the BOE’s economic stimulus program said the tool should be used infrequently because of its “less than ideal” performance
• The rock-bottom rates era may be drawing to a close, Goldman says
• French economic activity reached a level in August not seen since before the Covid-19 pandemic and has continued rising since, according to a Bank of France’s survey of businesses
• Every major semiconductor company has pledged to comply with a U.S. request for information pertaining to the global chip shortage, Commerce Secretary Gina Raimondo said
• China’s central bank will offer cheap funding to banks which lend to firms that are working toward the nation’s goal of reducing carbon emissions
• Inflation expectations rose to a new high for the coming year after months of soaring prices, the latest New York Fed survey shows
• The Biden administration looks to launch a global infrastructure program, intended to counter China’s Belt and Road initiative

©2021 Bloomberg L.P.

With assistance from Bloomberg