Fed on Hold, Lockdown Feuds, Shattered Confidence: Eco Day

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

• Federal Reserve policy makers are all but certain to keep the benchmark overnight rate in a target range of 0-0.25 when they release their statement at 2 p.m Wednesday. They will likely turn their attention to other steps that can be taken to ensure a strong rebound once stay-at-home measures come to an end
  • The FOMC meeting will afford policy makers the opportunity to make critical decisions about the length and scope of previously announced support measures which will have significant longer-run economic consequences, according to Bloomberg Economics
  • U.S. first-quarter GDP data is due before that -- here’s what to expect
• Lockdown rules in Mexico are making it difficult for U.S. manufacturing plans to reopen. One water-heater company shows the clash between the two countries on what’s considered an essential business or service
• The coronavirus crisis is thrusting governments on both sides of the Atlantic into a fiscal emergency. Both economies boast central powers that want to avoid getting on the hook for the debts of those under-performing
• Governments are doling out aid to the gig economy, acknowledging the change the labor market has undergone in the past decade
• The European Central Bank’s response to the coronavirus has calmed markets, while setting it on a path that could test its commitment to keeping prices stable
  • The closure of businesses and loss of work across Europe has shattered household and business confidence
• Britons leaving education could face the kind of difficult job market last seen in the 1980s as they enter the workforce for the first time

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