Policy Gap, 4.1% Unemployment, Yellen on Inflation: Eco Day
(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- The U.S. and China are pursuing divergent economic policies in the aftermath of the coronavirus recession in a role reversal from last time the world economy was recovering from a shock
- The U.S. is on course for an employment boom once restrictions end and the economy reopens, Goldman Sachs Group Inc. economists say. They predict the unemployment rate, currently at 6.2%, will fall to 4.1% by the end of the year.
- Treasury Secretary Janet Yellen dismissed fears the administration’s $1.9 trillion pandemic-relief bill is so big that it will cause an inflation problem. The package advancing through Congress could push 2021 GDP growth over 7%, according to Bloomberg Economics
- Even with the recent spike that saw the 10-year rate top 1.6%, Treasury yields haven’t been this low relative to U.S. economic growth estimates since 1966. That suggests the climb in rates may still have room to run
- For SNB chief Thomas Jordan, the franc’s precipitous drop has come at a helpful moment after an open season for attacks on his policies
- Bank of England Governor Andrew Bailey said risks to the U.K. economy remain tilted to the downside, a remark that may rein in expectations policy makers may soon shift to containing inflation
- The French economy will avoid a second recession in the Covid pandemic as a steadying of activity is enough to fuel “slight growth” in the first quarter of the year, the central bank said
- The ECB kept up a muted pace of pandemic bond-buying for a second week as maturing debt acted as a brake on officials’ stimulus efforts
- The U.K. became the biggest country to zoom in on the explosive topic of the pay gap between women and men when it began mandatory wage reporting in 2018
- In the hills of Mexico’s Yucatan peninsula, the jungle abruptly stops and dozens of saplings grow scattered around charred tree stumps. In this area, a vast reforestation program is linked to widespread destruction as well as regeneration
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