Fed’s Policy Stance, Trump Trade Alarm, EU Tariffs List: Eco Day

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

• Federal Reserve Chairman Jerome Powell and his colleagues have made an important shift in their strategy for dealing with inflation in a prelude to what could be a more radical change next year
• Applications for loans to buy U.S. homes rose to the highest level in almost nine years, adding to signs that the Fed’s pause on interest rates is supporting a sector that had been a drag on the economy in 2018
• China’s economy rebounded through the first quarter, a welcome sign of stabilization for the world and handing the government room for maneuver as trade negotiations with the U.S. enter a crucial stage
  • President Donald Trump may be giving China a new cudgel to use on American companies
• The European Union published its preliminary list of U.S. goods being targeted in a $12 billion plan for retaliatory tariffs over subsidies to Boeing Co., with a focus on farm products from areas that help form Trump’s political base
• U.S. and Japan trade discussions will now take place at an accelerated pace, according to Japan’s chief negotiator
• Chile’s economy will remain open and continue to grow even as trade tensions between the world’s two largest economies simmer and concerns about the global outlook mount, according to its finance minister
• The German economy is turning into Europe’s underperformer, with the government now predicting 2019 will see the weakest expansion in six years

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Lucy Meakin

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