Fed on Recovery, ECB’s Room to Move, U.K. Restrictions: Eco Day

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

• Fed Chair Jerome Powell said the U.S. economy is improving but has a long way to go before fully recovering. Powell will face lawmakers Tuesday along with Treasury Secretary Steven Mnuchin to discuss the need for more stimulus.
• ECB President Christine Lagarde said the ECB has room to add stimulus and can adapt its already expansive toolkit if the economy needs more help
• The U.K. government tells the public to work from home if possible, with Boris Johnson set to announce new restrictions on bars and restaurants as he seeks to halt a surge in coronavirus cases that threatens the fragile economic recovery
• Major economies have rolled out stimulus plans totaling trillions of dollars to lift the world economy out of its virus-induced recession. But is it enough? Bloomberg Economics is keeping track of the major moves across the G-7 and major emerging markets
• Australia’s central bank has several policy options following this month’s “substantial easing” via an expanded bank-lending program, Deputy Governor Guy Debelle said, without signaling a move is imminent
• India’s economy recovered further in July, according to a monthly GDP tracker. But that likely overstated the pace of recovery, according to Bloomberg Economics
• France said the EU should keep pursuing a free-trade agreement with the U.K. while warning that any British violation of the Brexit agreement would end the push
• The worst-performing currency in the European Union’s eastern wing has handcuffed Hungary’s central bank, limiting its ability to react to a worse-than-expected drop in output

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With assistance from Bloomberg