Fed’s Human Basics, Trump Says Deal Broken, BOE Race: Eco Day

(Bloomberg) -- Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Federal Reserve Chairman Jerome Powell’s assertion that too-low U.S. inflation will prove transitory hinges largely on what Americans pay for two basic needs: clothing and shelter
• President Donald Trump declared China’s leaders “broke the deal” he was negotiating with them on trade, ratcheting up his rhetoric ahead of fresh talks that were already clouded by imminent tariff increases and China’s threats of retaliation
  • Much of what comes next could depend on how Trump balances the two Chucks in his life. Meanwhile, here’s why the U.S. needs China more than you think
• Staying in China, the case for the nation to keep up stimulus to the economy has strengthened, with further incoming evidence indicating that the recovery is not yet self-sustaining
• Norway’s central bank has broken with a global trend, indicating it will probably raise interest rates in June, three months after the last increase
  • Chile and Peru also have central bank decision days today -- here’s Bloomberg Economics preview
• Former Reserve Bank of India chief Raghuram Rajan is moving up in the race to be the next Bank of England governor
  • House price growth in the U.K. remained weak in April as the slump in southeast England and London depressed the market
• Here’s a look at how companies, like people, suffer from inequality too
• Finally: The latest episode of our Stephanomics podcast investigates how China’s millennials are changing the world

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

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