Fed Red Alert, U.S. Recession End, Powell Testimony: Eco Day

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

  • When Covid-19 hit and widespread lockdowns of every type of business threatened a sudden halt in the flow of money, who did Federal Reserve Chair Jerome Powell turn to? This man
    • New Jersey estimates it would receive an interest rate of 2.19% if it borrows through the Fed’s new lending program to cover lost revenue during the coronavirus pandemic
    • Powell is in Congress again today testifying to a House select subcommittee on the coronavirus response. Here’s what we’ve learned so far
  • The panel of elite economists who judge the dates of U.S. recessions is finding that declaring an end to this year’s downturn is tougher than calling its start
  • Prime Minister Justin Trudeau’s lofty ambitions for “building back better” after the pandemic have come crashing into the reality of an apparent second wave of the virus in Canada

    • Six months after the Covid-19 shutdowns, more than two-thirds of Canadian small businesses still haven’t returned to full sales, according to a new report
  • The European Central Bank risks legal trouble if it tries to extend the “emergency powers” of its pandemic bond-buying plan to its other asset-purchase program, according to Executive Board member Yves Mersch
  • China’s government has amassed trillions of yuan in unspent money, handing it fiscal firepower to stimulate an economic recovery that’s already leading the world’s rebound from the Covid-19 shock

©2020 Bloomberg L.P.

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