Fed’s Dilemma, U.S.’s New Normal, Running Out of Meat: Eco Day

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

• Jerome Powell and his Fed colleagues are staring down the possibility of mass bankruptcies and long-lasting unemployment unless there’s a more concerted government effort to shield the U.S. economy from the impact of the coronavirus pandemic
  • A negative Fed policy rate is still improbable, but if it were to happen it could be a net benefit, according to JPMorgan
• The post-Covid-19 U.S. economy will look a lot like the one that struggled to recover from the 2008-09 financial crisis –- only in some ways worse
  • The surge in U.S. unemployment provides clues to the depth of the recession, according to Bloomberg Economics
• While many regular American grocers are running out of meat, specialty food producers have plentiful supplies -- for those who can afford it. This is just the latest way that the coronavirus pandemic has exposed a socioeconomic divide in America, disproportionately affecting low-income and minority populations
• China is still willing to meet its American farm purchase commitments as long as the U.S. creates a friendly atmosphere for more imports to take place, a Chinese agricultural expert said on Wednesday
• The head of the International Monetary Fund is recommending a $23.8 billion flexible credit line for Chile as the country braces for its deepest slump in four decades
• The U.K. economy shrank almost 6% in March as the nation went into lockdown, plunging into what may be its deepest recession in more than three centuries
• While betting on a euro breakup has proved to be a long-term loser, Italy’s tattered finances have pushed the question back to the top of mind for investors

©2020 Bloomberg L.P.