Powell’s Message, Inflation Surge, Policy Divergence: Eco Day

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

• Federal Reserve Chair Jerome Powell reinforced his message that the U.S. central bank would keep inflation in check
  • Federal Reserve Bank of Cleveland President Loretta Mester said she is “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed
  • President Joe Biden said his administration’s work has begun to alleviate supply-chain disruptions and that higher inflation is a “natural byproduct” of the global economy’s recovery from the pandemic
  • Biden is considering Atlanta Fed President Raphael Bostic and Duke University law professor Sarah Bloom Raskin to be the Fed’s top banking regulator
• Banxico’s nominee Victoria Rodriguez Ceja defended her track-record and experience to lead the Mexican central bank after opposition senators questioned her competence for the job
  • Meanwhile, the Banxico raised its growth forecast for next year and kept its inflation prediction far above target
• Inflation in the OECD area surged in October to its highest rate in almost a quarter of a century
  • The spike in food prices is providing governments and consumers with an even bigger inflation headache
  • This week’s Stephanomics podcast is all about inflation too
• Monetary policies in the U.S. and China are set to take diverging paths in 2022, according to Bloomberg Economics
• In the U.K., the emergence of the omicron variant may add enough uncertainty to the outlook to delay a widely-anticipated interest rate rise this month

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