Powell Pause, China Trade, Central Bank Super Thursday: Eco Day

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

  • Federal Reserve Chairman Jerome Powell said interest rates could be on hold for “some time” as global risks weigh on the economic outlook and inflation remains muted
    • Rich Miller and Craig Torres argue that the Fed is on a mission to stoke price pressures and avoid a Japan-like deflationary trap
    • In Asia, the Fed’s shift has opened the door for rate cuts
  • It’s a busy Thursday for central banks: Norway raised rates, while Switzerland, Indonesia, Taiwan and the Philippines all held
    • The Bank of England, mired in Brexit fog, also is set to keep policy unchanged
    • With the Russian central bank all but certain to hold fire at its decision on Friday, investors are instead watching closely for any hint that the inflation danger from a recent tax hike is over, paving the way for monetary easing
  • President Donald Trump said he’ll keep tariffs on China until he’s sure Beijing is complying with any trade deal, refuting expectations that the two nations will agree to roll back duties
  • As Brexit turmoil continues, Bloomberg Economics’ Maeva Cousin and Dan Hanson take a look at the economic fallout of a no-deal divorce on European countries
  • Italy is ready to lead its neighbors into signing up for China’s new Silk Road, despite U.S. and European concerns at Rome’s new openness toward the Asian giant
  • Finally, here’s what you need to know about Modern Monetary Theory

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