Fed Decision, BOE Groundwork, Suga’s Reform Plans: Eco Day

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

  • Federal Reserve officials, who recently unveiled a more relaxed strategy on inflation, have an opportunity Wednesday to back up the plan with details as they look to accelerate the U.S. economic recovery. The FOMC is all but certain to keep its benchmark overnight rate in a target range of 0% to 0.25%
    • The post-FOMC meeting press conference could be an opportunity for Chair Jerome Powell to incorporate an update to forward guidance, economists including Yelena Shulyatyeva write
  • Bank of England officials are expected to lay the groundwork this week for yet more monetary stimulus as optimism over the U.K.’s economic rebound fizzles out
    • U.K. prices are also under pressure: Figures published Wednesday showed inflation slowing to 0.2%, the weakest since 2015. The BOE’s goal is 2%
  • The WTO ruled the U.S. violated international regulations by imposing tariffs on Chinese exports, but the outcome has failed to dissuade Washington’s ‘America First’ policy
  • Yoshihide Suga, Japan’s new prime minister, is sticking with Abenomics but has set his sights on structural reforms for the debt-ridden nation. As Japan’s recovery makes headway, a former economy minister says Suga should look to show quick progress on one of his main goals
  • Judy Shelton, President Donald Trump’s Fed nominee who has drawn significant criticism for policy views outside the mainstream, doesn’t yet have enough support in the Republican-controlled Senate to win confirmation
  • Income was surging for U.S. households and the national poverty rate fell to a 60-year low before Covid-19 upended the economy. Meanwhile, U.S. manufacturing production rose in August by less than forecast
  • Joe Biden is calling on the federal government to offer debt relief to Puerto Rico as part of a broader plan to support the bankrupt U.S. territory
  • Escalating tensions with Beijing have shown up Australia’s reliance on trade with China and driven a push to build links to Asia’s other giant economy, India
  • Turks are more in love with the dollar than ever before. This year alone, they’ve poured $4 billion into the country’s foreign-currency bonds, taking local ownership to an unprecedented $17.1 billion
  • China’s interest rate toolbox is evolving -- here’s how and why

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