Fed Rate Outlook, Trump Trade Latest, ECB Resistance: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to take you into the weekend:

• U.S. central bankers will trim interest rates by a quarter percentage point next week, and again in December, before leaving the target range for their benchmark rate at 1.5%-1.75% for an extended period, according to economists surveyed by Bloomberg
• Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some U.S. tariffs, people familiar with the matter say
  • Meantime, China wants to boost purchases of pork from overseas, including the U.S. and European Union, according to people with knowledge of the plans
• Austria’s new central-bank governor said that the European Central Bank’s latest easing package was possibly a mistake and can be changed after incoming President Christine Lagarde takes over from Mario Draghi
  • That comes as ECB governors representing the core of the euro-area economy resisted President Mario Draghi’s ultimately successful bid to restart quantitative easing, according to officials; such a divided ECB puts governments under renewed pressure to step up with fiscal policy
• Following a jumbo rate cut, Turkey’s new central banker is striking a balance that could keep both the president and markets at bay
• Investors are hailing Greece’s plan for the early repayment of 3 billion euros in bailout funds as one of the strongest signs yet of its recovery from the economic devastation of the financial crisis
• The power of consumers is becoming the last best hope for emerging market investors as global recession risks rise. But even that’s starting to crack
• Finally, here’s our weekly wrap of what’s going on in the world economy

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, Zoe Schneeweiss

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