Rosengren’s Caution, Canada Rate Cuts, Chile Work Week: Eco Day

(Bloomberg) --

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

• Federal Reserve Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank, arguing he’s not convinced that slowing trade and global growth will significantly dent the U.S. economy; President Donald Trump urged the Fed to cut by a full percentage point
• More economists are coming around to the view the Bank of Canada will have to cut rates this year, with a move as early as September looking increasingly possible
• A labor-reform bill to cut Chile’s maximum work week to 40 hours from 45 is gaining widespread support
• Europe has weighed efforts to wriggle free from U.S. dominance for years, with little success -- but those efforts are more serious in the face of Trump’s repeated jabs
• Germany’s tentative steps toward a fiscal stimulus program to revive its flagging economy are a signal that the nation could be in for an unusually severe slump; Bloomberg Economics’ Jamie Rush says the country must act now to avoid a painful downturn
• The People’s Bank of China will now release the Loan Prime Rate each month, that pegs the cost of borrowing by firms and households more closely to the rates that banks pay for cash in money markets

To contact the reporter on this story: Eddie Spence in London at espence11@bloomberg.net

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

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