U.S. Price Pressures, Chip Shortage, Mexico Tax Break: Eco Day

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

  • The U.S. economy is also starting to display pockets of price pressures, further stoking the debate among economists and market participants over the future path of inflation

    • The economy also started 2021 with a bang as U.S. retail sales and factory output accelerated and expectations continue to build for another jolt of government stimulus
    • The White House acknowledged that Joe Biden’s proposed minimum-wage hike may not make it through Congress as he framed it
  • Fed staff members gave a potentially more worrisome assessment of the risks to financial stability in the central bank’s policy meeting last month than the one presented publicly by Chair Jerome Powell
    • Powell enters the final year of his term as Fed chair enjoying the support of labor unions with influence in Biden’s White House, an advantage as the administration prepares to decide later this year whether to reappoint the central bank chief
  • What began as a power issue for a handful of U.S. states is rippling into a shock for the world’s oil market
  • Biden’s top economic adviser, Brian Deese, has sought the Taiwanese government’s help resolving a global semiconductor shortage that’s idling U.S. car manufacturing plants, according to a letter reviewed by Bloomberg News
  • U.S. regulators stepped up the heat on ocean shipping companies and the seaport terminals some of them operate, seeking to smooth the disrupted flow of containers that are swamping America’s biggest ports and wreaking havoc on the nation’s strained supply chains
  • Mexico is preparing a significant tax break for its state-owned oil firm while the constitution blocks it from taking on debt to increase social spending during the pandemic, Finance Minister Arturo Herrera said in an interview
  • The socialist candidate who won the first round of Ecuador’s presidential election had lunch with investors in New York this week to try to persuade them not to panic if he wins
  • Bolivia’s socialist government says it repaid early its “onerous” loan with the International Monetary Fund, which was taken on by its predecessor

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