Fed Decision, Brazil Set to Hike, Mexico Finance Chief: Eco Day

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

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

  • Federal Reserve Chair Jerome Powell and his colleagues may consider moving up a discussion on scaling back monetary stimulus and penciling in a first interest rate hike as soon as 2023
    • Bloomberg Economics expects the Federal Reserve to keep rates on hold today and maintain its assessment of the recent inflation surge as “transitory”
  • The pandemic took a toll on the careers of many working mothers. A rush back to the office is shaping up to be just as damaging
  • Chicken-sandwich fever means poultry is pacing U.S. food inflation in the meat case
  • Brazil’s central bank is set to deliver a third straight interest rate hike of 75 basis points while it considers whether a strengthening economic recovery and rising inflation expectations should prompt more forceful monetary tightening
  • Rogelio Ramirez de la O, nominated as Mexico’s finance minister, will begin what is traditionally the country’s most influential cabinet role with the goal of obtaining a level of independence his predecessors didn’t enjoy
  • European Central Bank President Christine Lagarde is getting tougher with the institution’s unwieldy group of 25 policy makers over the agenda for monetary stimulus
    • Bloomberg Economics raised its euro-area growth forecast, especially for 2022
    • The ECB should consider using helicopter money to boost inflation if price growth is persistently weak after the pandemic, according to a French think tank which reports to the nation’s prime minister
  • U.K. inflation surged unexpectedly past the Bank of England’s target for the first time in almost two years, adding to speculation about when monetary policy could be tightened
    • One in five jobs based in the U.K. could be outsourced to other countries in the wake of the coronavirus pandemic, threatening the loss of well-paid white collar employment

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.