Fed Bubble Risk, Trade Talks, U.K. Services Slump: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your Wednesday started:

• The Federal Reserve risks stoking the same sort of asset bubbles that Chairman Jerome Powell has linked to the last two recessions with its new-found eagerness to fan inflation
  • Powell received a call from President Donald Trump on March 8 as concerns that day about the U.S. job market helped send stocks to their biggest weekly drop of the year
  • Trump’s top economic adviser said the president stands by his choice of Stephen Moore for an open seat on the Federal Reserve Board despite recent reports about the possible nominee’s failure to fully pay taxes and alimony
• Trade talks are entering a crunch time as Chinese Vice Premier Liu He resumes negotiations with his U.S. counterparts in Washington on Wednesday, with both governments pushing for an agreement to end their protracted trade dispute
• Britain’s Brexit turmoil inflicted further damage on the economy last month as the nation’s huge services sector shrank for the first time in more than 2 1/2 years
• Still, there was slightly better news in the euro-area economy, which got a modest lift as activity in services came in stronger than anticipated at the end of the first quarter
• Growth in Africa’s two largest economies may be sputtering along but that won’t stop the continent’s gross domestic product from expanding at the fastest pace since at least 2012

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss

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