Fed Decision Day, Trump's Currency War, U.K. Inflation: Eco Day

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

• It’s decision day for the Federal Reserve, where, facing pressure from Wall Street and the Whitehouse, Federal Reserve Chairman Jerome Powell and his colleagues may be running out of patience
• Meanwhile, the world’s most powerful central bank is making clear it thinks the law is on its side if President Donald Trump tries to remove Powell
• Trump has already given the global economy trade wars. Now there are signs he may be gearing up for a currency war, too
  • Trump was riled by European Central Bank President Mario Draghi’s comments that he was prepared to cut interest rates further below zero in response to Europe’s slowing growth.
  • That means Draghi may be leaving office with a stimulatory bang that is bound to test the limits of the institution’s firepower
• Central America encourages migrants to leave -- and then rakes in U.S. dollars
• Cheaper air travel and car prices pulled down U.K. inflation to the Bank of England’s target level last month. A separate report showed British manufacturing output ground to a near halt in the second quarter
  • Almost 20% of Britons in wage-earning homes are living in poverty, according to a think-tank study
• Finally, a Boris Johnson premiership could lead to fiscal risks, according to Bloomberg Economics

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

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Lucy Meakin

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