Biden’s Economic Agenda, Transitory Inflation, ECB Woes: Eco Day

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Welcome to Friday, Americas. Here’s the latest from Bloomberg Economics to start your day: 

• Congressional Democrats began a new round of haggling on President Joe Biden’s $1.75 trillion spending framework as they worked to fill in details and deal with last-minute attempts to restore priorities that had been left out
• Treasury Secretary Janet Yellen said she’s still confident U.S. lawmakers will overcome the current impasse
  • She also stuck by her view that elevated inflation is temporary
  • A Fed-preferred inflation gauge is due to slow, Bloomberg Economics writes. Coming months are likely to see acceleration to 4% or above on the core rate
• Euro-area inflation accelerated more than expected to breach 4% for only the second time ever
  • Markets aren’t buying Christine Lagarde’s efforts to push back against increasingly aggressive bets by traders that the European Central Bank will raise interest rates next year
• China’s manufacturing likely contracted again on power shortages
• Windfall revenue from high commodity prices and changes to the way gross domestic product is calculated have brightened the outlook for South Africa’s economy
• Finally, here’s a look how Chile’s pension system became a Covid piggy bank

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