U.S. Oomph, Canada Jobs Report, Creeping Inflation: Eco Day

Happy Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

  • The big question in financial markets is whether the post-pandemic recovery will bring a burst of inflation. In some corners of the world economy, it’s already arrived
  • U.S. Treasury Secretary Janet Yellen said Americans would begin receiving $1,400 relief payments in their bank accounts this weekend following enactment of the $1.9 trillion pandemic-relief bill

    • Easing restrictions and distributing vaccinations will allow U.S. consumer spending to regain its long-held status as the key economic engine this year, according to Bloomberg Economics
    • After the worst economic collapse in almost a century, the U.S. is now on the cusp of the biggest boom since the Reagan years. But normal is still a long, long ways off
  • Investors will be looking closely at Canada’s jobs data for February due this morning from Statistics Canada for clues as to when the central bank might begin reducing bond purchases or consider adjusting interest rates
  • Brazil’s economic team is considering the likelihood that this year’s round of Covid cash handouts may last longer and cost more than what was approved by congress
  • The European Central Bank’s promise to “significantly” boost the pace of its bond purchases is threatening to turbo-charge a yield divergence with the U.S. that could drive money out of Europe, unless the Federal Reserve ramps up its commitment to ease policy at its own meeting next week
    • Most ECB policy makers have no intention of expanding their 1.85 trillion-euro ($2.2 trillion) emergency stimulus program despite their pledge to step up bond buying to keep yields in check
  • The Biden administration has informed some suppliers to China’s Huawei Technologies Co. of tighter conditions on previously approved export licenses, prohibiting items for use in or with 5G devices, according to people familiar with the move
  • The Chinese economy appears to have stayed on its recovery track after some softening at the beginning of the year, according to Bloomberg Economics

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