School Woes, Debt Rule, Central Bank Digital Currencies: Eco Day

Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

  • The U.S. economy is set for a strong 2021 with some price pressures as the pandemic recedes, Federal Reserve Bank of Richmond President Thomas Barkin said
    • Joe Biden’s economic team is determined to make good on his campaign pledge to raise taxes on the rich, emboldened by mounting data showing how well America’s wealthy did financially during the pandemic
    • Former Treasury Secretary Lawrence Summers said that the U.S. is facing the “least responsible” macroeconomic policy in four decades
    • What to watch in the U.S. economy this week
  • Stripped down to basics, the new consensus in economics goes like this: It’s fine for governments to borrow and spend more money -- so long as they can get hold of it cheaply
  • The global pandemic has now locked out children from classrooms for as much as a year in some countries, a loss of learning that will store up long-term economic damage
  • U.S. and Chinese officials traded acrimony and accusation in Alaska that both sides hope will clear the air. Now the real work begins
  • The rise of Bitcoin, Diem and other vehicles for electronic payment has accelerated central bank moves to create their own digital currencies. Initial steps have been cautious. Final consequences could be far-reaching, according to research by Bloomberg Economics
    • The topic will be a key focus at a Bank for International Settlements event this week, where central bank officials are set to discuss the future of digital money
    • Meanwhile, the Fed’s digital dollar momentum is worrying Wall Street
  • The shock dismissal of Turkey’s central bank chief triggered concern the country is headed for a fresh bout of currency turbulence
  • Shipping congestion outside the biggest U.S. gateway for goods imported from Asia stayed elevated as a recent drop in the number of anchored ships failed to lower the average wait for berth space

    • A standoff between commodities giants and shipping companies is prolonging the labor crisis at sea, with an estimated 200,000 seafarers still stuck on their vessels beyond the expiration of their contracts and past the requirements of globally accepted safety standards

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