Closing Tax Breaks, Summer Camp Stampede, Price Pain: Eco Day

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

  • President Joe Biden is pushing to close a tax break that helped his predecessor amass a fortune
  • Global negotiators attempting to rewrite tax rules for the digital era are tussling over a threshold for corporate revenue as one of the criteria to resolve the thorny issue of how to tax globe-trotting U.S. tech giants
  • The U.S. and China took another step toward restarting economic and trade talks, with Treasury Secretary Janet Yellen and Vice Premier Liu He holding what they described as frank discussions in their first call
  • Fed Governor Lael Brainard said there are risks on both sides of monetary policy right now as the U.S. economy surges ahead in a post-pandemic boom while millions of people remain unemployed
    • At this stage, the burden of proof is on inflation hawks to show why U.S. inflation won’t moderate in the years to come
    • The expiration of expanded pandemic-era unemployment benefits in half of U.S. states in June and July will test the theory that generous payments have contributed to a stall in the labor market recovery. Bloomberg Economics’ calculations suggest slightly more than a million workers will face a strong incentive to return to work
  • A fevered hunt for U.S. child care make the lead-up to this year’s summer camp season the most stressful ever
  • Europeans are in for a costly summer that will test central bankers’ resolve on stimulus as the region’s delayed economic recovery unleashes surging demand
  • Labor disparities between young and old widened during the pandemic. The virus has been deadliest for older people, but the pandemic-driven economic downturn wreaked havoc on the professional lives of many young people
  • Ports around the U.S. are rolling out vaccines for seafarers, extending a lifeline to thousands of mostly foreign workers who’ve spent the pandemic isolated aboard ships ensuring goods kept trading across a battered global economy

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