Fed Decides, Main Street Lagging, India Inflation: Eco Day

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

  • The Federal Reserve is all but certain to hold interest rates near zero at the end of its two-day meeting Wednesday, and to repeat a pledge to keep buying bonds at the current $120 billion monthly pace
  • French Finance Minister Bruno Le Maire urged the European Union to speed up disbursements from its flagship stimulus package after the Finnish government threw a potential wrench into the process of releasing the funds
  • The economic rebound powering the S&P 500 Index to almost-daily records has left large swaths of Main Street behind, with millions of small businesses waiting to join the party
  • President Joe Biden and his economic team are planning to forgo an expansion of the estate tax in the administration’s coming individual tax-hike proposals, according to people briefed on the plan
  • The uptick in inflation in India is threatening the central bank’s easy policy. Meanwhile, U.S. companies are raising prices on strong demand and crunched supply
  • Asian economies are seeing a fast recovery from the pandemic, though their paths are diverging, the Asian Development Bank estimates
  • China’s baby drought is good news for bond buyers
  • The economic divide between China’s prospering southern regions and lagging northern areas will continue to widen in coming years, with huge implications for growth, debt and policy making
  • Economic recovery is picking up in South Korea, where consumers have responded with more optimism
  • Virus resurgence abroad is battering Singapore’s travel sector more than expected, the country’s central bank said in its twice-annual economic review
  • Governor Tiff Macklem said he remains committed to the Bank of Canada’s 2% inflation target, even as price pressures are expected to temporarily overshoot that goal

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