Fed and Brazil Rate Decisions, Revenge Spending: Eco Day

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

  • The Federal Open Market Committee is all but certain to hold interest rates near zero at the conclusion of its two-day policy meeting on Wednesday, and repeat a vow to keep buying bonds at the current $120 billion monthly pace
    • Here’s everything you need to know about the dot plot
    • Bloomberg Economics expects Fed policy makers to remain firmly committed to the policy glide path they instituted in 2020, even if the economic outlook has improved
  • The U.S. economy is bracing for the “revenge spending” phenomenon, which is expected to see a wave of demand for everything from apparel to eating out
  • Brazil is poised to raise its key interest rate from an all-time low as policy makers look past a shaky economic recovery to fight the fastest inflation in four years.

    • Bloomberg Economics expects Brazil’s central bank to lift the Selic rate by 50 basis points to 2.5%, but can’t rule out a sharper increase
  • The world’s biggest makers of shipping containers are scrambling to meet a surge in demand for the metal boxes that shuttle some 90% of the goods around the global economy

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