U.S. Child Poverty, Depressed Small Firms, China Births: Eco Day

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

  • Joe Biden’s administration has dedicated its first few weeks in office to spending more money on pandemic relief -- and shrugged off warnings that the economy may overheat as a result
    • Biden and White House officials are siding with liberal Democrats stung by past efforts to reach compromise with Republicans and they are refusing to heed GOP appeals to scale back the administration’s $1.9 trillion stimulus plan
  • Optimism among U.S. small businesses fell in January to an eight-month low as the outlook for economic conditions deteriorated sharply
  • Support is rising among policy makers to address America’s child-poverty crisis, which is getting worse as the pandemic drags on
  • Companies that violate U.S. supply-chain rules around inundated American ports may be penalized, according to a key maritime regulator in Washington who is pushing the freight industry to work more closely to address bottlenecks
  • The International Monetary Fund risks having to renegotiate its second multi-billion dollar loan in Latin America in as many years following Ecuador’s presidential election
  • Yawning gaps between rich and poor countries, pressure from climate change, and ease of travel point to more migration in coming years, Bloomberg Economics’ Felipe Hernandez and Tom Orlik write
  • The People’s Bank of China warned against relying on consumer finance to boost household spending in its latest policy report, which also signaled there would be no rapid changes in its overall monetary policy stance
    • The number of newborn babies in China fell by double digits last year, a sign the birthrate is continuing to decline and worsening demographic pressures in the rapidly aging country

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