Fed Jobs, Biden’s Call With Xi, Mexico Rate Decision: Eco Day

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

  • Economist Lisa Cook has the backing of several key White House officials and allies outside the administration as a possible choice for President Joe Biden in filling a vacancy on the Federal Reserve Board of Governors, according to people familiar with the matter
    • Fed Chair Jerome Powell says he has nothing but affection for his work, suggesting that the 68-year-old central banker could be open to a second term if asked
    • Powell said the U.S. job market remains a long way from a full recovery and called on both lawmakers and the private sector to support workers
  • Biden has promised to “act fast” in delivering another dose of pandemic relief, including $1,400 checks for millions of Americans. That doesn’t mean all the recipients will be in a hurry to spend the money
  • Biden, in his first conversation as president with the Chinese leader Xi Jinping, spoke of his concern about China’s “coercive and unfair economic practices” as well as human rights abuses in the Xinjiang region, according to a White House account of their telephone call
  • Mexico’s central bank faces a knife-edge decision on whether to cut the benchmark interest rate, as fuel prices have pushed up inflation while the country desperately needs more stimulus
  • Canadians appear to be in no rush to draw down about C$150 billion ($118 billion) in extra savings accumulated during the pandemic, a potential drag for the nation’s already lagging economic performance
  • The European economy will recover more slowly this year as the coronavirus keeps a tight grip on the region, with the outlook resting largely on a vaccination campaign that has so far stumbled
  • European Central Bank policy makers are airing their boldest views yet on how to introduce climate criteria for their corporate bond-buying program, opening a new front in a controversial debate over how to make monetary policy greener
  • Debt relief provided by private creditors for the world’s poorest nations under a Group of 20 restructuring plan will hinge on each borrower’s situation and might not necessarily reduce any money owed, according to the chair of the Paris Club
  • With no inflation in sight, why the inflation debate? Read our QuickTake for more

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