Fed Pause Possible, Brexit Gravity Test, Upbeat Draghi: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help round of your week:

  • Federal Reserve Chairman Jerome Powell has laid out a scenario for a pause in the central bank’s interest-rate hiking campaign sometime next year by highlighting potential headwinds to the U.S. economy.
  • Is an inverted yield curve still a reliable economic indicator? Years of ultralow interest rates have complicated the recession warning.
  • As hard-line Brexiteers make their move on Theresa May, here’s a look at why their trade plans are a test of gravity.
  • Mario Draghi expects the euro area to continue growing in coming years even amid risks from protectionism that need to be monitored “very carefully.”
  • U.S. Commerce Secretary Wilbur Ross says not to expect too much from a Trump-Xi meeting centered on a trade deal; meanwhile Singapore doesn’t want Asean to have to choose between two friends
  • Signing up. Europe is dealing across Asia on trade amid the U.S.-China tensions, including a free-trade agreement between Indonesia and the EU
  • Central banks in Indonesia and the Philippines raised interest rates this week in an unexpected pair of developments
  • Prime Minister Shinzo Abe is dialing it back a bit on the recently unveiled foreign-worker proposal, even as Japan suffers from a wide labor shortage. That crunch is also good news for the nation’s ‘Gen Z’ new Grads.
  • Finally, for a rundown of all you might have missed in the global economy this week, check out the regular roundup

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