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U.S. Inflation, Brazil’s Economic Record, Rate Reviews: Eco Day

U.S. Inflation, Brazil’s Economic Record, Rate Reviews: 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:

  • U.S. Federal Reserve Chair Jerome Powell signaled on Wednesday that inflation is now enemy No. 1 to keeping the U.S. economic expansion on track and returning the labor market to something approaching ebullient pre-pandemic levels
  • The re-election of Brazilian President Jair Bolsonaro hinges on the economy -- and next year’s outlook isn’t likely to suffice to carry him to a second term, according to the Eurasia consultancy
    • Bolsonaro’s government is kicking out the International Monetary Fund’s permanent representative to the country as complaints about the institution’s economic estimates escalated into a diplomatic spat
  • Got debt? High inflation is starting to chip away at debts built up during the pandemic
  • It’s a big day for central banks:
    • The European Central Bank will try to exit emergency stimulus without tightening
    • The Bank of England will decide whether to pull the trigger on its first interest rate increase since the pandemic began, weighing a surge in inflation against a surge in coronavirus infections
    • Mexico and Colombia’s central banks are expected to increase interest rates again, as inflation accelerates throughout Latin America, the region with the highest average cost-of-living increases this year
    • Turkey cut rates, Norway and Hungary hiked, while Switzerland, Philippines, Indonesia, Taiwan held
  • China is likely to set a floor for economic growth of 5% next year as it tries to balance a desire to rein in the real-estate sector with the need for stability in a year of crucial political change
    • Economists see the PBOC cutting reserve requirement ratios again in the first half of next year as the economy takes a knock from an ongoing property market slump and sporadic Covid outbreaks
  • Finally, check out this week’s Stephanomics podcast on the so-called great resignation’s Chinese counterpart

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