Fed Rate Decision, Covid Stimulus, Global Debt Load: Eco Day

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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 is expected to maintain the central bank’s aggressive support of the U.S. economy at the conclusion of its two-day policy meeting on Wednesday, despite having spied “light at the end of the tunnel” from the pandemic
    • Here’s what Bloomberg Economics will be on the lookout for at Powell’s post-meeting press conference
  • Meanwhile, Senate Majority Leader Chuck Schumer said he’s ready to start moving on a Democrat-only relief plan as soon as next week if Republicans continue to reject proposals
    • New research shows that last year’s tranches of the Paycheck Protection Program covered less than a month of business expenses
  • In the battle against Covid-19, governments around the globe are on the cusp of becoming more indebted than at any point in modern history, surpassing even World War II
  • Widespread lockdowns and slower vaccine rollout in Europe have put the continent behind global peers in global growth forecasts. Bloomberg Economics says it stands by its decision to take an ax to its first-quarter economic forecasts for the region
  • The European Central Bank has the necessary tools, including interest-rate cuts, to prevent any further strengthening of the euro undermining inflation, Governing Council member Klaas Knot said
  • Finally, here’s why Covid-19 and shipping containers have sailors swearing

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