Fed Decision Day, U.S. Recession Watch, U.K. Inflation: Eco Day

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

  • Under pressure from Wall Street and President Donald Trump, the Federal Reserve is widely expected to reduce interest rates on Wednesday for a second straight meeting, but its sharply divided policy panel may be reluctant to forecast further cuts
    • Ahead of its big decision Wednesday in Washington, the Federal Reserve’s rare move to inject billions in cash to damp short-term rates shows how Wall Street’s been struggling to absorb record sales of Treasury debt
    • Meanwhile, some Fed watchers are predicting this week’s volatile moves in U.S. money markets raise the odds that the central bank will start expanding its balance sheet, just weeks after it stopped running down its portfolio of bond holdings
  • More than half of U.S. chief financial officers anticipate the economy will be in a recession within a year, with optimism at its weakest point since 2016 as deteriorating prospects for earnings and difficulty finding qualified workers weighed on companies
  • U.K. inflation fell to its lowest rate since the end of 2016 in August, driven down by the price of computer games and clothing
    • Despite the more benign price growth, a record number of Britons sought advice about debt in the first half of 2019, reflecting how households have been spooked by Brexit-related economic uncertainty
  • Brazil’s central bank is poised to deliver a bold interest rate cut for a second straight meeting as policy makers rush to the aid of a weak economy
  • European Central Bank Vice President Luis de Guindos restated the institution’s call for euro-zone governments to increase efforts to support the economy
  • Don’t bank on a global recession just yet, says the head of the central bankers’ bank

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